Chinese Stock Screening with Amplitude, a Rounded Pattern, and Positive Return

Summary

This note describes a Chinese stock screen that combines amplitude above one, a rounded price pattern, and a positive return. Its indicator example expresses the rounded pattern through the stock’s position within the recent five-period high-low range, while the return condition compares the current close with the prior close. The note presents these filters as a way to find stocks with recent upward movement and comparatively gradual price behavior.

It offers a rationale for each condition but provides no backtest, performance results, or detailed evidence that the combination predicts future returns. The discussion warns that relying on recent returns and amplitude can overlook other technical signals and company fundamentals, and that higher-amplitude stocks may carry greater trading risk. It recommends considering additional indicators and fundamentals, as well as interactions between amplitude and price gains. The selection rule is therefore a basic screening idea rather than a complete, validated strategy; the document supplies no Python implementation.

Key ideas

• The screen combines amplitude above one, a rounded price pattern, and positive return.
• The rounded-pattern condition uses a recent five-period price range in its indicator example.
• The note gives a qualitative rationale but reports no tests or performance evidence.
• Recent returns and amplitude alone may overlook fundamentals and other technical factors.
• Higher amplitude can bring greater trading risk.

Tags

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