Screening Chinese Stocks for Reversal Candles and Excluding STAR Market Names

Summary

This stock screen combines daily amplitude above one percent with a reversal or engulfing-style candle condition, then excludes stocks classified as belonging to the technology innovation segment. The article provides indicator formula examples and Python-like logic using high, low, close, industry classifications, and a candlestick function. It also describes sorting selected names by heat rank, making this a technical selection filter rather than a complete trading system.

The article offers no backtest, trade rules, or return evidence, and its definition of the reversal condition is not fully consistent across the displayed formula and code example. It warns that excluding the technology innovation segment may concentrate the resulting universe in other sectors and increase structural exposure. It recommends adding fundamental checks such as profitability and financial condition to improve robustness, while the screen itself does not specify position sizing, exits, or portfolio-level risk management.

Key ideas

• The screen requires amplitude above one percent and a reversal-style candle pattern.
• It excludes stocks assigned to the technology innovation segment.
• The examples combine technical indicators with an industry classification and rank candidates by heat.
• The article supplies no performance evidence and notes that sector exclusions can concentrate risk.

Tags

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