Metaverse Stock Screening with Positive Returns and Arc-Shaped Lows

Summary

This note describes a Chinese equity screening rule for stocks classified in the metaverse sector. It selects stocks whose latest close is above the previous close and whose current low matches the lowest low over either a 20-session or 30-session lookback. The close must also be above the midpoint of the day’s high and low. The document provides equivalent formula and Python examples, but does not present performance results or evidence that the pattern predicts returns.

The author characterizes an arc-shaped price path as a possible buying or selling signal, while acknowledging that chart shapes are not reliable on their own and that emerging-sector stocks can be sensitive to policy and market shifts. Suggested additions include market capitalization, capital flows, earnings measures, and stop-loss or take-profit rules. The final proposed screen mentions additional fundamental and technical filters without specifying them, so those conditions cannot be reproduced from the note alone. The examples also depend on the data source’s industry classification and historical price data.

Key ideas

• The screen is limited to stocks classified in the metaverse industry.
• It requires a positive latest daily price change and a low equal to the rolling minimum over one of two lookback windows.
• The latest close must sit above the midpoint of the session’s high and low.
• The author treats the chart pattern as an imperfect signal and suggests adding fundamental, technical, and risk controls.

Tags

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