Chinese Stock Screening with Reversal Candles and a Fixed Price Filter

Summary

This post outlines a Chinese stock screen using daily amplitude, a reversal-style candle condition, and a fixed closing price of 18.5 yuan. It provides both an indicator formula and Python example, with the latter also invoking candlestick pattern functions. The exact meaning of “反包” is not fully consistent across these implementations, so the operational definition of the reversal signal is unclear.

The author warns that relying on price behavior alone overlooks company fundamentals and other drivers of stock prices, and suggests adding valuation measures such as price-to-earnings and price-to-book ratios. The post also recommends examining the reasons behind price changes and mentions dynamic adjustment. It offers no backtest, sample, or performance data; its claims about improved selection accuracy are unsupported. The fixed-price condition may also sharply constrain which stocks qualify and is not presented with a rationale or validation.

Key ideas

• The screen requires amplitude above 1%, a reversal-style pattern, and a closing price of 18.5 yuan.
• The formula and Python example use different-looking definitions of the reversal condition.
• The author suggests adding fundamental valuation analysis to supplement price-based filters.
• The fixed price threshold is presented without supporting rationale or performance evidence.
• No backtest results are reported.

Tags

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