Chinese Stock Screening by Volatility, Ten-Day Gains, and Limit-Ups

Summary

This Chinese equity screen combines three short-term price conditions: amplitude above 1, a positive ten-day gain below 35, and more than two limit-up days within ten days. The document describes amplitude as a measure of price fluctuation, uses the gain band to avoid stocks that have risen too far, and treats repeated limit-ups as a sign of positive market sentiment. It also includes example formula and Python logic, with candidates sorted by a heat measure.

The author cautions that price action and market sentiment can dominate the screen while leaving company fundamentals unexamined. Limit-ups over a short window do not demonstrate sustainable earnings, and the document recommends considering financial measures and broader market conditions. No backtest, performance figures, or validation of the stated signals is supplied. The criteria therefore describe a screening idea, not evidence of a profitable trading strategy.

Key ideas

• The screen requires amplitude above 1, a positive ten-day gain below 35, and more than two limit-up days during that period.
• The gain band is intended to exclude stocks with excessive recent appreciation.
• Repeated limit-up events are treated as a short-term sentiment signal rather than proof of durable business strength.
• The author recommends adding financial and market context to the technical screen.
• No strategy performance or backtest evidence is presented.

Tags

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