Stock Screening by Daily Range, Main-Force Control, and Recent Limit-Ups

Summary

This Chinese equity screen selects stocks with a daily amplitude above 1, an indicator described as main-force control on the previous day, and at least one limit-up event in the preceding 25 days. The suggested interpretation is that a wide trading range reflects activity, the control measure reflects large-investor positioning, and a recent limit-up signals strong price action. Reference formulas and a Python example are included, but the implementation uses proxies such as price relative to a five-day moving average and a positive daily change.

The document identifies several limitations: it omits fundamentals and broad market risk, and its few filters may fail as conditions change. It recommends including company finances, valuation, growth prospects, and market risk monitoring. No historical test results or evidence that the signals predict future gains are reported. The indicator labels and code mappings are not fully explained, so users would need to validate their definitions and test the screen before relying on it.

Key ideas

• The screen combines daily amplitude, a prior-day control proxy, and a limit-up within the previous 25 days.
• The example code approximates control using price relative to a five-day moving average.
• The document cautions that the screen omits fundamentals and overall market conditions.
• It reports no backtest evidence for the proposed signals.

Tags

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