Screening Chinese Stocks with a Morning Star and Large Range

Summary

The post describes a short-term Chinese equity screen built around a daily price range threshold, a morning-star-style candlestick condition, and a minimum market capitalization. Its example formula combines a low-price condition, a trading-status check, range, and company size. The accompanying Python sketch adds moving-average alignment and MACD conditions when checking the candlestick pattern, then filters securities using market data and a capitalization field. These conditions illustrate one way to translate a technical setup and size filter into a screening workflow.

The author characterizes the approach as technical and cautions that it omits fundamentals, may be vulnerable to market or sector downturns, and uses narrow selection criteria that could bias results. Suggested extensions include adding other indicators and fundamental measures, and adapting the size threshold to industry or market conditions. No backtest, return series, or risk statistics are provided, and the formula and sample code do not establish that the screen is profitable or that all data fields and thresholds are consistently implemented.

Key ideas

• The screen combines a price-range condition, a morning-star-style setup, and a minimum market-capitalization filter.
• The sample implementation adds moving-average alignment and MACD checks to its candlestick test.
• The post warns that technical-only screening may suffer drawdowns and selection bias.
• It proposes combining technical signals with fundamentals and adapting size thresholds to context.
• No performance evaluation is presented, so the screen’s effectiveness remains unverified.

Tags

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