Selecting Chinese Stocks by Amplitude and Long-Term Trend

Summary

This stock screen combines a recent amplitude condition, exclusion of stocks that closed at the daily limit on the prior session, and a requirement that the prior close exceed the 250-day moving average. The article presents this as a buy signal and says the holding period can be adjusted to suit risk and return preferences. Its rationale is to seek stocks showing price movement while retaining confirmation from a longer-term trend.

The document gives a technical-indicator formula and a Python example that retrieves Chinese market data, calculates a simple moving average, and filters eligible listings. However, the sample's checks do not clearly implement the stated amplitude threshold or identify a prior limit-up close; it instead compares selected daily prices. No backtest results or performance measures are supplied. The article also notes that technical screening omits company fundamentals and can be vulnerable to short-term market noise, and suggests adding other indicators or fundamental criteria and defining entry and exit rules.

Key ideas

• The proposed screen requires prior-day amplitude above the stated threshold and excludes prior-day limit-up stocks.
• It also requires the prior close to be above its 250-day moving average.
• The article frames qualifying stocks as buy candidates and leaves holding duration to the user.
• The sample implementation's price checks do not clearly match every stated screening condition.
• The author identifies missing fundamental analysis and short-term signal errors as risks.

Tags

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