Screening Chinese Stocks with a Morning-Star Pattern and Weekly Candles

Summary

This post proposes a technical stock screen combining price amplitude above a threshold, a named morning-star candlestick pattern, and a bullish weekly candle condition. It frames the pattern as a way to identify shares that have recently declined but may be poised to rebound. The accompanying example code examines weekly OHLC data, checks candle colors and price relationships, and includes an amplitude condition; the text also suggests adding fundamentals, industry context, volume, turnover, price, and market value.

The author cautions that the screen relies mainly on technical signals and may miss weak company fundamentals or industry conditions. The document does not provide a backtest, benchmark, sample period, or evidence that the pattern predicts returns. Its prose and code describe parts of the filtering logic differently, so users would need to reconcile the intended pattern definition and confirm that the weekly data checks match it before evaluating the approach.

Key ideas

• The screen combines a minimum amplitude condition, a morning-star pattern, and a bullish weekly candle signal.
• The example code evaluates weekly OHLC data and recent candle characteristics.
• The post recommends adding company, industry, liquidity, and other market information.
• No performance evidence is supplied, and the described pattern rules should be reconciled with the example implementation.

Tags

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