Chinese Stock Screening by Amplitude, Turnover, and Prior-Day Low

Summary

This Chinese equity screening rule looks for stocks with amplitude above 1, turnover between 2% and 9%, and a closing price above the previous day’s low. The article frames the conditions as a short-term technical filter: amplitude captures price movement, turnover indicates trading activity, and the prior-low comparison aims to identify stocks holding above a recent price level. It includes example formulas and a Python selection outline.

The document offers no backtest, performance statistics, or evidence that the screen predicts returns. It notes that the price condition is simple and can be distorted by large orders, while short-term technical inputs can misclassify stocks. It proposes adding volume, money-flow measures, RSI, volatility measures, and fundamental information for further analysis. The supplied script is presented as a reference and contains platform-specific data assumptions, so it should not be treated as a validated implementation or a complete trading system.

Key ideas

• The screen requires amplitude above 1, turnover above 2% and below 9%, and a close above the prior day’s low.
• The rules use price movement and trading activity to identify short-term equity candidates.
• The document provides example formulas and a Python outline but no empirical results.
• The author warns that a simple price condition and short-term indicators can generate false signals.

Tags

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