Screening Chinese Stocks with Amplitude, Morning Star, and Rising Averages

Summary

The document proposes a short to medium term stock screen combining daily price amplitude, a morning star candlestick pattern, and upward movement or alignment in moving averages. It presents a formula-style rule and Python example for filtering listed Chinese stocks, with the code also checking turnover and MACD conditions. The stated intent is to identify shares showing volatility and potential short-term upward momentum.

The screen is described as predominantly technical and the document acknowledges that it gives limited attention to company fundamentals and may produce a narrow set of candidates. It recommends considering industry and company information and refining the selection criteria. No backtest, benchmark, or measured return evidence is provided. The code’s implemented checks do not fully match the prose description, including how amplitude and moving-average divergence are handled, so its signals would need careful review before research or use.

Key ideas

• The proposed screen combines price amplitude, a morning star pattern, and moving-average direction.
• The Python example adds turnover and MACD filters to its stock selection process.
• The document characterizes the approach as mainly technical and notes its weak coverage of fundamentals.
• No performance evidence is supplied, and the code’s conditions should be checked against the stated rules.

Tags

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