Small Profitable Stocks with Rising Lows and High Volatility

Summary

This Chinese stock-screening note combines three filters: price amplitude above 1, rising bottoms, and market capitalization below 10 billion yuan, while requiring positive net profit. It presents the screen as a way to combine a price-pattern condition with company profitability and size. The article also suggests adding volume, MACD, and revenue growth measures, or allowing some flexibility around profitability to broaden the candidate set.

The evidence is a stated selection rule and example formulas and Python-like pseudocode; no backtest, returns, or sample of selected stocks is reported. The author cautions that strict profitability and size conditions may exclude technically strong but unprofitable growth companies, and that earnings can shift with industry and macroeconomic conditions. The implementation details may require adjustment, and the article does not define the amplitude or rising-bottom calculations precisely. It should therefore be read as a screening idea rather than a validated trading strategy.

Key ideas

• The screen requires amplitude above 1 and successively higher bottoms.
• It limits candidates to firms valued below 10 billion yuan with positive net profit.
• The article proposes combining technical measures with profitability and revenue growth.
• Strict filters may leave few candidates and omit unprofitable companies with promising price action.
• The examples provide no performance evidence and leave some indicator definitions unspecified.

Tags

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