Short-Term Stock Screen Using Price Amplitude, Control, and Positive Returns

Summary

This short-term Chinese stock selection idea looks for shares with price amplitude above 1%, a signal described as main-force control on the previous day, and a positive return on the current day. The rationale is that amplitude reflects stronger market movement, the control measure is intended to represent large-player activity, and a positive daily return indicates recent strength. The provided formula approximates control with the close relative to a five-day moving average.

The document supplies example indicator and selection logic, but no backtest, quantified outcome, or explanation validating the control proxy. It cautions that the approach relies on short-term conditions and could produce concentrated holdings. It suggests incorporating company fundamentals, valuation, broader technical measures, and risk controls. Because the conditions use recent price data, their usefulness may vary across market regimes, and the document does not specify execution timing or portfolio construction.

Key ideas

• The screen requires price amplitude above 1%, a previous-day control signal, and a positive current-day return.
• The example represents the control signal using the close relative to a five-day moving average.
• The method targets short-term price strength but provides no evidence of tested performance.
• The post highlights regime dependence and possible concentration as risks.

Tags

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