Screening Chinese Stocks for Consecutive Gains and Long-Term Trend

Summary

This proposed A-share screen combines a daily range filter, a recent three-session limit-up condition, and a closing price above its 250-day moving average. The accompanying explanation interprets these as signs of trading activity, strong buying interest, and an upward long-term trend. It suggests favoring firms with stable earnings, profitability, and relatively low valuations, and proposes adding fundamentals, industry context, or other indicators to refine selection.

The document supplies formula and Python examples, but their implementations do not clearly match the stated setup: the formulas check recent rising closes rather than explicitly identifying three limit-up sessions, and the range threshold is expressed differently across the descriptions and code. No backtest, return series, or evidence of predictive advantage is provided. The stated risks include neglect of fundamentals and exposure to macroeconomic and industry conditions; the moving average can also lag price changes. Treat the screen as a set of candidate filters requiring precise definitions and independent testing.

Key ideas

• The proposed screen combines a range condition, three recent limit-up sessions, and a close above the 250-day moving average.
• The explanation treats these filters as signals of activity, buying interest, and an upward trend.
• It recommends considering company fundamentals and industry conditions alongside technical filters.
• The supplied code examples do not consistently implement the stated limit-up and range conditions.
• The document provides no backtest evidence, and the moving average may lag changing prices.

Tags

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