Chinese Stock Screening with Reversal and Institutional Buying Signals
Summary
This Chinese stock selection proposal combines daily price movement, a reversal pattern, institutional net buying and company size. It first screens for an intraday high-low range above 1%, then looks for a reversal, evidence that large holders crossed above small holders in net flows, and at least two institutional net-buying days within the recent five-day window. A market-capitalization ranking is also used to retain larger stocks. The document provides indicator formulas and a Python-style implementation as examples of how to assemble the screen.
The author identifies missed opportunities and inaccurate institutional signals as risks, and suggests adding liquidity, industry and other institutional-flow measures. It does not provide backtest results, performance data, or a precise validation of the reversal definition. The sample implementations also differ in some details, including the size-ranking direction and the reversal indicator, so the screen would need careful specification and testing before use.
Key ideas
- The screen combines price range, reversal, institutional-flow and company-size conditions.
- Institutional buying is approximated using relative large-holder flows and activity over five trading days.
- The proposal suggests adding liquidity and industry information to refine the selection.
- No performance evidence is provided, and the example implementations contain differences that require reconciliation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.