Screening for Volatile Stocks After a Prior-Day Limit-Down Match

Summary

This Chinese equity screen looks for stocks with amplitude above 1, a prior-day 9:15 matching price at the limit-down level, and a MACD value below zero from two days earlier. The final rule adds a market-capitalization floor of 1 billion yuan. The article frames the combination as a way to find volatile shares after a sharp downward price event, using MACD as an additional technical filter, and provides example indicator expressions and Python-like code.

The document does not report historical tests, returns, or evidence that these conditions identify undervalued stocks or a reversal. It cautions that the approach relies on technical data and leaves out company fundamentals and broader market conditions; it also mentions limitations in detecting manipulation or insider activity. It suggests adding financial and industry measures, but offers no defined entry, exit, sizing, or validation procedure. The examples are references to adapt, not a demonstrated or complete trading system.

Key ideas

• The screen combines amplitude above 1, a prior-day limit-down matching price, and a MACD reading below zero from two days earlier.
• The final rule also requires market capitalization of at least 1 billion yuan.
• The article supplies example expressions but no performance test or return evidence.
• It identifies missing fundamental and market context as important limitations.

Tags

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