Screening Shenzhen Stocks After Three Consecutive Limit-Up Sessions

Summary

This screening rule targets Shenzhen main-board stocks with daily amplitude above 1, three consecutive limit-up sessions as of the prior day, price-to-earnings ratios from zero to 29.01, and price-to-book ratios from zero to 3.11. The post interprets amplitude as a sign of activity, consecutive limit-ups as evidence of buying enthusiasm, and the valuation ranges as a way to seek comparatively attractive stocks. It includes sample code, but no backtest or performance evidence.

The author warns that the filter relies heavily on short-term sentiment, does not account for broader market or sector conditions, and omits company fundamentals. Proposed improvements include adding financial and industry analysis and considering the overall market. The post does not explain how to handle limit-price rules, trading suspensions, or entry and exit execution, so the screen alone does not define a complete strategy or establish that the stocks are undervalued or likely to continue rising.

Key ideas

• The screen combines amplitude above 1 with three consecutive limit-up sessions ending the previous day.
• It restricts candidates to Shenzhen main-board stocks within stated price-to-earnings and price-to-book ranges.
• The post treats repeated limit-ups as a sign of short-term buying enthusiasm, not as tested evidence of future returns.
• The author notes that the rule omits fundamental analysis and broader market and industry conditions.
• No backtest or trading and exit rules are provided.

Tags

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