Chinese Stock Screening with Amplitude, Five-Day Average, and Float Size

Summary

This stock-selection proposal screens for shares with amplitude greater than 1, an average price above the five-day moving average, and a circulating share count no greater than 5.5 billion. The rationale is that elevated amplitude may indicate trading activity, a price above its short moving average may indicate an upward trend, and a limited float may leave room for price movement. It also suggests adding chart-pattern and trend measures, calibrating float data, and using stop-loss and profit-control rules.

The document cautions that small-float shares may be vulnerable to price manipulation and that float size does not necessarily correspond to low market capitalization. It includes illustrative code, but its data fields and calculations may require modification; the text itself notes the need for practical adjustments. No backtest, comparison, or return evidence is provided. The screen is therefore a proposed heuristic rather than a demonstrated strategy, and its thresholds and assumptions should be validated before use.

Key ideas

• The proposed screen combines amplitude, price relative to a five-day moving average, and circulating share count.
• The rationale treats amplitude as a possible sign of trading opportunity and price above the average as a possible uptrend.
• The document warns that small-float shares may face manipulation risk.
• Float size alone does not establish that a company has low market capitalization.
• Additional trend or pattern filters, data checks, and explicit risk controls are suggested, but no performance test is given.

Tags

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