Screening Chinese Stocks for Rising Bases and Rounded Price Patterns

Summary

This Chinese stock-selection idea combines amplitude above 1 with a rounded price shape and a rising base. The accompanying indicator formula approximates the pattern using recent highs and lows, the close's position within the daily range, and volume relative to its five-day average. The article suggests that a higher base may indicate a possible reversal and that increased volume can help assess whether a trend change is developing. It provides no backtest, sample, or measured outcomes to support that interpretation.

The author identifies subjectivity in defining a rounded pattern and warns that a rising base is only one technical signal. Suggested improvements include adding fundamental and market context and tuning the rules against historical data; machine learning is also mentioned as a possible optimization approach. The Python implementation is absent, and the final proposed logic calls for additional indicators without specifying them. The formula is therefore best treated as an illustrative screen rather than a fully defined or validated strategy.

Key ideas

• The proposed screen combines amplitude, a rounded price profile, and a rising base.
• Its formula uses recent price ranges and relative volume to approximate the chart pattern.
• The article treats a rising base as a possible reversal clue, not a stand-alone confirmation.
• Pattern subjectivity, unspecified refinements, and the absence of backtest evidence limit the proposal.

Tags

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