Selecting Chinese Stocks by Daily Range and Proximity to the 10-Day Average

Summary

This article outlines a Chinese equity screen combining a prior session’s high-low range greater than 1% with an opening price near the 10-day moving average. It adds a company-characteristics filter, suggesting traits such as growth or dividend profile, and describes combining the conditions as an intersection. Example formulas are provided for a charting platform and Python, including a five-percent band around the moving average.

The article argues that a large range may signal a new trend and that an open near the average may indicate consolidation, but it presents no test results or evidence that these interpretations predict returns. The company filter is left as a placeholder, and the choice of characteristics is subjective and potentially unstable. It advises using multiple attributes, considering fundamentals and industry prospects, and setting stop losses; these are general suggestions rather than a validated strategy.

Key ideas

• The screen requires a prior-session price range above 1% and an opening price within five percent of the 10-day moving average.
• A separate company-characteristics condition must be supplied to complete the selection rule.
• The examples combine all three filters to identify stocks.
• The article provides no backtest evidence and flags subjectivity and concentration risk in choosing company traits.
• It recommends diversification across characteristics and stop-loss monitoring.

Tags

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