Screening Stocks by Amplitude, Listing Age, Volume, and Gap-Up

Summary

This Chinese stock screen combines four conditions: amplitude above 1, more than one year since listing, current volume above 10,000 lots, and an opening price above the previous close. The article interprets amplitude and volume as signs of market activity, listing age as a stability filter, and a gap-up open as evidence of positive sentiment. It includes example indicator calculations and a Python-style procedure for producing a stock list.

The article warns that selecting hot or gap-up stocks can lead to chasing prices, that price moves may include speculative activity, and that the filters omit other technical and fundamental information. It suggests adding indicators such as MACD or RSI, considering fundamentals, and using risk controls such as stop losses. The supplied text provides no backtest or measured returns, and its code examples do not establish that the screen has predictive value.

Key ideas

• The screen requires amplitude above 1, a listing age over one year, volume above 10,000 lots, and an opening gap above the prior close.
• The article associates volume and amplitude with activity and interprets a gap-up open as positive market interest.
• It cautions that hot-stock screens may encourage chasing and can be exposed to speculative price moves.
• The author suggests adding other technical or fundamental filters and using stop-loss controls.
• No empirical performance evidence is presented.

Tags

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