Screening Chinese Stocks by Price Swings, Reversal Candles, and Profit Growth

Summary

This stock screen combines a daily price-range threshold, a reversal-style candle condition, and year-over-year growth in net profit attributable to parent-company shareholders. The stated fundamental filter requires growth above 20% and at or below 100%. The article suggests that combining price action with profit growth may help identify candidates, and proposes adding further financial and technical measures to refine the screen.

It gives example indicator and Python implementations, but they do not consistently match the described rules: the Python snippet compares profit figures in a way that conflicts with the stated growth range, and its candle-pattern implementation may not correspond to the described reversal. The text offers no backtest, performance evidence, or detailed definitions for the amplitude and reversal conditions. It also notes that relying on one growth measure and technical filters can miss important risks or introduce screening errors. Treat the examples as an outline requiring validation, not a tested trading strategy.

Key ideas

• The screen combines a price-amplitude threshold with a reversal-style candle condition and parent-company net-profit growth.
• The stated profit-growth band is above 20% and no greater than 100% year over year.
• The article recommends adding other financial and technical measures to broaden the assessment.
• The code examples contain inconsistencies with the stated criteria and should be checked before use.
• No backtest or measured trading results are provided.

Tags

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