Chinese Stock Screening with Amplitude, Morning Star, and Rounded Price Patterns

Summary

This Chinese stock-screening example combines a high-amplitude condition with a morning-star candlestick pattern and a rounded price shape. Its Python illustration adds filters for listing market, market capitalization, positive earnings, and a recent close above the prior close. It checks the candle pattern using open and close relationships, moving averages, and the candle’s position within its daily range. For the rounded shape, it smooths closing prices with Savitzky–Golay filters at several window lengths and compares the resulting series.

The article argues that these technical conditions may identify active stocks, but it provides no backtest, return series, benchmark, or evidence that the filters predict gains. It cautions that historical performance may not persist and that relying heavily on a less common shape pattern may obscure more relevant information. The sample code’s screening choices and pattern definitions are only illustrative; they require validation and risk controls before practical use.

Key ideas

• The screen combines amplitude, a morning-star pattern, and a rounded-price-shape condition.
• The example adds market capitalization, earnings, and recent price direction filters.
• Savitzky–Golay smoothing is used to help identify a rounded price shape.
• The article supplies no performance evidence and warns that historical behavior may not continue.
• The pattern definitions and sample implementation require validation before use.

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