Screening Chinese Stocks for Range, Large-Order Flow, and Recent Limit-Ups

Summary

This note describes a short-term Chinese equity screen combining daily price range, large-order net flow ranking, and a limit-up event within the prior 25 days. It presents these conditions as proxies for trading activity, capital interest, and market sentiment, with the aim of finding stocks that may have near-term upside potential. An accompanying implementation example uses a price-range threshold, turnover-related filters, and historical limit-up data to illustrate how candidates might be selected.

The document offers no backtest results or performance evidence, and the example does not fully reproduce every stated filter. It cautions that the screen relies on technical and sentiment measures and omits company fundamentals. Limit-up signals are also imperfect, so the author suggests adding other technical and fundamental information and validating the approach through backtesting. The screen is therefore a candidate-selection heuristic, not evidence of a profitable strategy.

Key ideas

• The screen combines price range, large-order net flow ranking, and a limit-up event in the recent past.
• These measures are intended to approximate short-term activity and market sentiment.
• The method does not assess long-term business quality or other fundamental factors.
• Its practical effectiveness is not demonstrated, and backtesting is recommended.

Tags

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