Screening Chinese Stocks for Rising Lows, Volatility, and Market Value

Summary

The document proposes a stock screen combining three conditions: price amplitude above a threshold, progressively higher price lows, and circulating market capitalization above a stated floor. Its rationale is to find stocks with enough movement to avoid very quiet price action, a rising base pattern, and a minimum company size. It includes example formulas and partial Python code, but does not define the amplitude calculation consistently across them or establish how the rising-bottom condition should be measured.

The author flags the screen’s limited inputs and fixed market-cap boundary, noting that it omits financial statements, industry position, and operating conditions. Suggested extensions include relative strength, moving averages, turnover, valuation measures, and profit growth, alongside adjusting the size range. These are proposals rather than tested improvements: the document reports no backtest, benchmark, return, or risk statistics. The screen is a starting point for research, not evidence that selected stocks have superior investment prospects.

Key ideas

• The proposed screen combines price amplitude, rising lows, and a minimum circulating market capitalization.
• The document offers example implementations but does not specify the screening calculations consistently.
• The author identifies missing company fundamentals and industry context as limitations.
• Suggested additions include technical measures, valuation ratios, and profit growth, but no test results are reported.

Tags

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