Selecting Chinese Stocks by Auction Turnover, Amplitude, and Rising Lows

Summary

This stock-selection screen combines three conditions: daily amplitude above one, a top-five rank by the day’s auction amount, and rising lows. The rising-lows condition is described as comparing the minimum low over a shorter recent window with the minimum over a longer window; a higher recent minimum is treated as a possible sign that a stock is lifting from a base. The screen is intended to find shares with activity, price movement, and evidence of improving lows.

The post cautions that the pattern does not establish a durable uptrend and does not account for company earnings, fundamentals, macroeconomic conditions, or broader market and industry direction. It suggests adding indicators such as MACD or RSI and considering fundamental and macro context. The material gives example indicator expressions and a code sketch, but no backtest, selection universe, execution rules, or performance evidence. The ranking definition and amplitude units also need verification in the chosen data platform before use.

Key ideas

• The screen selects stocks with amplitude above one, top-five auction amount ranking, and a rising-low condition.
• Rising lows are presented as a possible sign that price is recovering from a base.
• The selection rule combines activity and price-pattern criteria but does not assess company fundamentals.
• The author recommends considering other technical indicators and market context.
• No performance evidence or execution specification is provided, and platform-specific definitions need checking.

Tags

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