Screening Chinese Stocks by Range, Limit-Ups, and a Lower Low

Summary

This stock screen selects shares with a daily range above a stated threshold, at least two limit-up moves during the preceding 500 days, and a current low below the previous day’s low. The article interprets the range and historical limit-up conditions as signs of prior strength, while the lower low is intended to identify a short-term pullback. It presents formula and Python examples for implementing these filters.

The article provides a screening concept, not a complete trading system: it does not specify entry timing, exits, position sizing, or a portfolio construction method. It also offers no backtest or evidence that the selected shares outperform. The author cautions that technical filters omit fundamentals and macroeconomic conditions, and suggests combining additional indicators or industry analysis. The formulas and sample implementation are references whose details may need adjustment to the data source and market conventions.

Key ideas

• The screen combines daily range, historical limit-up frequency, and a lower low than the prior session.
• The lower-low condition is intended to find a short-term pullback after signs of past strength.
• The article includes example formulas and a Python-style implementation.
• The screen is not accompanied by a backtest or a complete entry and exit plan.
• Technical-only selection may miss fundamental and macroeconomic risks.

Tags

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