Screening for Prior Limit-Ups, Intraday Range, and a Lower Daily Low

Summary

This Chinese stock-screening idea combines three conditions: at least two limit-up events during the previous 500 days, an intraday amplitude above 1%, and a current low below the prior day's low. The historical limit-up count is treated as a sign of past strong price action, while the range and lower low capture current volatility and weakness. The note describes this as a technical and market-sentiment screen, not a complete trading system.

It cautions that the rules omit company fundamentals and may overemphasize short-term price behavior, raising the risk of excessive trading and exposure to short-term swings. It recommends considering financial data and risk controls such as stop-loss and take-profit rules. The document provides formula and Python examples but no backtest or performance evidence; the examples also appear to use inconsistent definitions or comparisons for amplitude, prior lows, and historical limit-up events. These details need verification before implementation.

Key ideas

• The screen requires at least two limit-up events in the prior 500 days, amplitude above 1%, and a lower current low than the previous day's low.
• The historical limit-up count is used as a proxy for prior momentum or market interest.
• The note warns that technical filters omit fundamentals and may increase short-term trading risk.
• It recommends incorporating financial information and explicit risk controls.
• No performance results are reported, and the sample formulas and code contain definitions that need checking.

Tags

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