Selecting Chinese Stocks by Range, Control, and Daily Return

Summary

This stock selection rule screens for shares with an intraday range above 1, an indication that major players controlled the stock on the previous day, and a daily return between -5% and 2.6%. The stated rationale is to find volatile shares showing some upward tendency while avoiding stocks whose gains have already become too large. The article describes this as a short-term technical and capital-flow screen.

The document offers no measured performance or backtest results. It cautions that short-term market moves can dominate the selection and that the rule omits company fundamentals. Its narrow return band may also exclude potential opportunities. Suggested refinements include adding technical indicators such as MACD or RSI and examining company fundamentals, but no tested method for combining them is provided. Treat the selection criteria as a screening idea, not evidence of a profitable strategy.

Key ideas

• The screen requires an intraday range above 1 and prior-day major-player control.
• It keeps stocks with daily returns between -5% and 2.6%.
• The proposed rationale is to find volatile stocks with some upward tendency while limiting already large gains.
• The rule focuses on short-term signals and does not assess company fundamentals.
• The article provides no backtest results to establish the screen’s performance.

Tags

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