Screening Large-Cap Stocks by Daily Range and 10-Day Average Proximity

Summary

This note outlines a Chinese equity screen combining a circulating market capitalization above 10 billion yuan, a daily range filter, and an opening price within two percent of the 10-day moving average. The intended idea is to focus on larger companies showing some price movement while opening near a short-term average that the note treats as possible support. It includes indicator and Python examples, but the range calculations and data fields in the examples do not consistently match the written rule. No backtest, trade record, or performance comparison is reported.

The author warns that the choice of moving average is arbitrary and that apparent short-term support can fail quickly. The proposed screen also lacks broader financial quality, valuation, and market-context checks. MACD, RSI, and machine-learning analysis are mentioned as possible extensions, without specifying how to integrate them or showing that they improve results. The note is therefore a rough screening concept rather than a validated strategy: it provides no ranking method, portfolio construction, entry timing beyond the opening condition, exit rule, or risk controls.

Key ideas

• The proposed screen requires circulating market value above 10 billion yuan and an opening price within two percent of the 10-day average.
• It also applies a daily price-range filter, though the examples do not clearly implement the written condition.
• The note interprets proximity to the moving average as possible short-term support, while warning that it can break.
• It suggests adding other technical and financial measures but gives no tested method for doing so.
• No performance evidence, entry plan beyond the screen, or exit and risk rules are provided.

Tags

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