Chinese Stock Screening with Price Amplitude, the 5-Day Average, and Volume Ratio

Summary

This stock-selection proposal screens for amplitude above one, a price above the 5-day moving average, and a volume ratio between 1.5 and 6. The intended interpretation is that price strength may indicate an uptrend, while elevated but bounded trading activity may provide both opportunity and liquidity. The article also recommends considering company fundamentals, multi-year earnings growth, dividends, and risk controls.

It supplies indicator formulas and sample code, but reports no historical performance or empirical validation. The code examples are internally inconsistent: the stated condition uses average price, while the formula checks closing price; the Python example also contains mismatched measures and an undefined return-rate variable. The screen may therefore require careful implementation before evaluation. The article cautions that omitting fundamentals can select speculative stocks and expose traders to higher risk.

Key ideas

• The proposed screen combines amplitude above one, price above its 5-day average, and a volume ratio from 1.5 to 6.
• The rationale associates price above the moving average with an upward trend and the volume filter with activity and liquidity.
• The article suggests adding company fundamentals and risk controls, but gives no tested combined rules.
• The formula and code examples contain inconsistencies, so the criteria need clarification before they can be evaluated.

Tags

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