Screening Stocks by Volume Ratio and Prior Limit-Up Days
Summary
This Chinese community post describes an equity screen combining three criteria: rank stocks by volume ratio and retain the top 100, exclude ST-designated stocks and require circulating market value above 1 billion yuan, and select stocks with at least two limit-up sessions in the previous 500 trading days. The rationale offered is that unusually high relative volume may indicate investor attention, while prior limit-ups may point to strong price action. The market-value and listing-status filters are presented as ways to focus on more established stocks.
The post provides no backtest, performance data, or detailed calculation method; its volume-ratio formula is truncated. It warns that volume can be manipulated, that selected stocks may be overheated or overvalued, and that repeated limit-ups may precede a pullback. Suggested additions include profitability and valuation screens, technical indicators, and trend-following or mean-reversion rules. These are proposals rather than tested improvements, so the screen should be treated as a candidate-selection heuristic, not evidence of a profitable strategy.
Key ideas
- The screen ranks stocks by volume ratio and selects the top 100.
- It excludes ST stocks and requires circulating market value above 1 billion yuan.
- It selects stocks with at least two limit-up sessions in the prior 500 trading days.
- High volume and prior limit-ups are interpreted as signs of attention and price strength, but neither guarantees future gains.
- The post suggests adding financial, valuation, and technical filters without supplying tests of those additions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.