Combining Price Amplitude, Moving-Average Proximity, and Earnings Growth

Summary

This Chinese stock-selection strategy combines three filters: daily amplitude above 1, an opening price near the ten-day moving average, and parent-attributable net profit growth above 20% and no more than 100%. The note interprets the amplitude as a sign of short-term volatility, the opening price near its moving average as a possible adjustment phase, and the earnings condition as a measure of company growth. It provides example formulas and Python-style logic for screening and sorting candidates by volume.

The document presents no historical test, return figures, or evidence that the combination predicts future performance. It warns that profit growth alone can conceal company-specific problems and that other fundamental factors are missing. Suggested safeguards include using technical and fundamental analysis together, limiting single-stock exposure, and applying stop-loss rules. The described thresholds and interpretations are screening choices rather than validated investment conclusions.

Key ideas

• The screen combines an amplitude threshold, an opening price within five percent of the ten-day moving average, and a bounded earnings-growth range.
• The note interprets these filters as signals of short-term movement, price adjustment, and company growth.
• The examples show how to form a candidate list but provide no backtest or return evidence.
• The author warns that growth alone can overlook underlying company risks and recommends position limits and loss controls.

Tags

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