Screening Chinese Stocks for High Range and Rising CCI Lows

Summary

This stock selection example combines a daily price range filter with a calendar-year condition and a rising Commodity Channel Index (CCI) pattern. It first looks for a high-to-low range exceeding one percent of the previous close, restricts observations to 2021, and then identifies cases where CCI remains below zero while rising across consecutive readings. The article provides corresponding formula and Python examples.

The rationale is that larger ranges indicate greater volatility, while rising CCI readings below zero may suggest improving prices near a low area. The author flags the subjectivity of interpreting this pattern and the added risk of selecting volatile stocks, and suggests combining it with indicators such as RSI or MACD and using stop levels or diversification. No backtest results or evidence of profitability are presented. The year restriction is specific to the example and does not establish that the pattern generalizes to other periods or markets.

Key ideas

• The screen selects observations with a range above one percent of the previous close in 2021.
• It treats rising consecutive CCI readings below zero as a possible early improvement near a low.
• The article supplies both an indicator formula and a Python selection example.
• The author notes that pattern interpretation is subjective and higher volatility can increase risk.
• No performance test is reported, so the example does not establish profitability.

Tags

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