Screening Chinese Stocks by Price, Volatility, and Limit-Up History
Summary
This stock-selection rule combines three filters: daily amplitude above 1, at least two limit-up sessions within the prior 500 days, and a closing price below 12. The article frames the price threshold as a way to focus on lower-priced shares and the volatility and limit-up history as signs of stocks with potential for sharp moves. It gives a sample formula for the closing-price condition and illustrative Python code for calculating amplitude, counting large price gaps over a rolling window, and applying the price filter.
The accompanying discussion cautions that a low share price does not indicate low valuation or strong fundamentals, and that large amplitude can make trading difficult or reflect weak liquidity. It recommends adding fundamental and technical measures and considering industry conditions. The article offers no backtest, performance evidence, or detailed definition of amplitude and limit-up handling; the supplied code is only a reference and would need data and calculation checks before use.
Key ideas
- The screen requires amplitude above 1 and at least two limit-up events during a 500-day lookback.
- It additionally excludes shares closing at or above 12.
- A low nominal share price does not establish that a company is undervalued or less risky.
- High amplitude can increase trading difficulty, so fundamentals and market context may add useful checks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.