Screening Stocks by Price Amplitude, Rounded Shape, and Long-Term Trend

Summary

This Chinese-language post describes a stock-selection rule combining three conditions: price amplitude above a threshold, a rounded price shape, and the prior day's close above the 250-day moving average. Its formula approximates the rounded shape by locating the current close near the lower portion of its 50-day price range. The post frames the long moving average as a trend filter and the shape and amplitude conditions as ways to find smoother-moving candidates.

No backtest results, selected stocks, benchmark, or evidence of profitability are provided. The post itself warns that shape classification can be subjective and that technical filters do not screen out weak fundamentals. Its formula is only an approximation of a rounded formation, and the suggested additions of other indicators or fundamental review would require separate testing before practical use.

Key ideas

• The screen combines an amplitude threshold, an approximate rounded-price condition, and a long-term moving-average filter.
• The rounded-shape condition is represented using the close's position within a 50-day high-low range.
• A close above the 250-day moving average serves as the trend filter.
• The post provides no performance test and cautions that technical screening omits fundamental risks.
• The formula's pattern proxy may not capture a rounded formation consistently.

Tags

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