Screening Stocks by Price Amplitude, Three Limit-Up Days, and Valuation

Summary

This post outlines a Chinese equity screen combining daily price amplitude above 1%, a 2021 date condition, and three consecutive limit-up sessions. Its final stated criteria also require trailing price-to-earnings below 30 and price-to-book below 5. The rationale is that high amplitude and repeated limit-ups may signal volatility and market attention, while valuation limits add basic filters. It provides example formula and Python snippets, but no performance results or backtest evidence.

The post warns that chasing heavily traded or volatile stocks can lead to losses. It suggests adding company fundamentals, other technical indicators, and controls such as stop levels or diversification. The examples have apparent ambiguities: equality of consecutive closing prices does not by itself establish limit-up days, and the Python logic checks three equal closes rather than the stated limit-up condition. The screen is therefore a rough illustration, not a validated trading strategy.

Key ideas

• The screen combines price amplitude above 1% with a 2021 date filter and three consecutive limit-up sessions.
• The final criteria add trailing price-to-earnings below 30 and price-to-book below 5.
• The post associates repeated limit-ups with attention and high amplitude with greater volatility.
• It recommends considering fundamentals, technical indicators, stop levels, and diversification.
• The examples do not demonstrate profitability and may not correctly encode consecutive limit-up days.

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