Screening Chinese Stocks for Three-Day Limit-Up Momentum

Summary

This Chinese equity screening note starts with stocks whose daily price range exceeds 1%, that had three consecutive limit-up sessions the prior day, and whose price is around 18.5 yuan. Its proposed refinement widens the price band to 17.5–19.5 yuan and adds a five-day versus 20-day moving-average bullish crossover. The stated rationale is to combine high activity and recent buying interest with a trend signal.

The article supplies indicator and Python examples, but no historical test, performance figures, or evidence that the filters predict returns. It flags the narrow fixed-price criterion and the omission of other market and company factors. It also suggests considering broader market direction and fundamental characteristics. The written rules and sample code do not fully align: the prose specifies prior three-session limit-ups, while the code uses closing-price comparisons that do not establish that condition. Treat the screen as an illustrative hypothesis requiring precise definitions and validation.

Key ideas

• The initial screen combines a daily range threshold, a prior three-session limit-up run, and a price near 18.5 yuan.
• The proposed refinement uses a 17.5–19.5 yuan band and a bullish five-day/20-day moving-average crossover.
• The article offers implementation examples but reports no backtest or evidence of predictive performance.
• Fixed price filters and omitted market or company factors may limit the screen.
• The sample code does not clearly implement the stated three-session limit-up condition.

Tags

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