Chinese Stock Screening with Price Amplitude, Main-Force Control, and a Five-Day Average

Summary

This Chinese stock-screening post proposes selecting shares whose price amplitude exceeds a threshold, that showed “main-force control” the prior day, and whose average price is above the five-day moving average. It presents these conditions as a way to focus on stocks with an upward trend. The accompanying discussion treats amplitude as a measure of price fluctuation and the moving-average condition as a trend filter, but gives no backtest or performance evidence.

The post warns that reliance on the moving average can exclude shares that later recover, and that a breakout may quickly reverse. It also notes that a broad market decline or change in market style could undermine the approach. The sample formula and Python sketch are references rather than a fully consistent specification: the formula uses close relative to the five-day average and a daily return threshold, while the prose describes average price and prior-day main-force control. The post suggests adding technical or fundamental filters, risk controls, and diversification; it does not define these additions or validate the strategy.

Key ideas

• The screen combines a price-amplitude condition, a prior-day main-force condition, and a price relationship to the five-day moving average.
• The post frames the moving average as a filter for shares in an upward trend.
• A quick reversal after a breakout can make the screen miss candidates or produce weak signals.
• The strategy may be vulnerable to market-wide declines and changes in market style.
• The example code and formula do not precisely match every condition stated in the prose.

Tags

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