Screening for Rising Lows and High-Amplitude Chinese Stocks

Summary

This proposed equity screen looks for stocks with daily amplitude above one percent, excludes Beijing-listed shares, and applies a condition described as a rising bottom. The post presents formula examples using a 60-day lookback and suggests that the setup may help identify volatile stocks or potential rebounds. It also recommends combining the technical screen with measures such as valuation, profit growth, leverage, moving averages, or MACD, and mentions stop-loss and profit-taking rules as possible risk controls.

The article does not provide a backtest, trading results, or a precise general definition of a rising bottom. Its example formulas also need review: the written indicator formula and Python example use different high-price calculations, and the Python expression compares the current high with a rolling maximum in a way that may prevent the condition from triggering. The post itself notes the risk of false breakouts, subjective thresholds, and neglect of fundamentals. Treat the screen as an illustrative proposal requiring corrected rules and empirical testing.

Key ideas

• The screen combines amplitude above one percent, a regional exclusion, and a rising-bottom condition.
• A 60-day lookback is used in the example formulas for the bottom condition.
• The post suggests supplementing the technical criteria with fundamental and trend measures.
• False breakouts and subjective definitions are identified as risks.
• The formulas differ and may contain an implementation issue, and no test results are provided.

Tags

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