Screening Chinese Stocks by Amplitude, Moving-Average Crossover, and K Value

Summary

This stock-selection rule screens for shares with daily amplitude above 1, a price move above a short moving average, and a low K value. The article’s final rule describes price crossing above the three-day moving average with K below 20. It also provides indicator formulas and a Python example that calculates amplitude, moving averages, and a stochastic-style K measure from historical prices. The code and written conditions are not fully identical in how they describe the moving-average condition, so implementation details should be checked before use.

The post offers no backtest results or evidence that the screen predicts returns. It warns that technical and statistical filters omit fundamentals and broader market conditions, and suggests adding macroeconomic, industry, and company-level analysis. The rule is therefore a candidate selection filter rather than a complete trading strategy: it does not specify portfolio construction, position sizing, holding period, or exit rules. Its usefulness depends on data quality, precise indicator definitions, and subsequent evaluation.

Key ideas

• The screen combines daily price amplitude, a short moving-average condition, and a low K indicator reading.
• The written rule specifies amplitude above 1, an upward move through the three-day moving average, and K below 20.
• The article provides formulas and a Python example, but their moving-average conditions are not described identically.
• The post provides no performance evidence and does not define position sizing, holding period, or exit rules.
• It cautions that technical filters omit fundamentals and market context, which may affect selection quality.

Tags

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