Chinese Stock Screen Using Rising Lows and External-to-Internal Volume

Summary

This Chinese stock-selection proposal combines price movement, rising lows, and trading-volume balance. It screens for amplitude above one, a rising bottom pattern, and external volume exceeding internal volume by a ratio above 1.3. The fuller logic also excludes ST and *ST shares and includes technical conditions involving DEA and the middle and upper Bollinger Bands. A stated exit condition is triggered when the candlestick or closing price falls below the Bollinger middle band; the accompanying formula and Python example add further indicator checks.

The article describes the approach as a way to identify stocks with favorable daily behavior, but supplies no backtest results or performance evidence. It cautions that relying on a narrow set of market and technical measures can miss promising stocks, and that unusual trading can make the volume ratio unstable. Its optimization suggestions include combining further indicators with company size and volume measures. The code examples also contain implementation details that would need review before use, and the selection rules should be validated against historical data and trading costs.

Key ideas

• The screen looks for amplitude above one, rising lows, and external-to-internal volume above 1.3.
• The fuller selection logic excludes ST and *ST stocks and adds DEA and Bollinger Band conditions.
• The proposed exit occurs when a candlestick or closing price falls below the Bollinger middle band.
• The article warns that its limited indicators can miss stocks and that abnormal trading can distort the volume ratio.
• No backtest or measured performance is presented, so the rules require independent validation.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.