Stock Screening by Daily Range, Recent Limit-Up, and Opening Gap

Summary

This Chinese stock-screening note builds a watchlist using three conditions: daily price amplitude above 1%, at least one limit-up event in the preceding 25 days, and an opening move smaller than 6% in absolute terms. The stated rationale is to seek stocks with meaningful volatility and prior market interest while avoiding an especially large opening gap. Formula and Python examples illustrate how the conditions might be combined.

The article does not provide backtest results or evidence that the screen predicts returns. It cautions that historical signals may not forecast future performance, that the opening move does not determine the full day’s trend, and that a strong sector can still gap sharply. It suggests grouping by industry or market capitalization and adding financial data to reduce concentration and individual-stock risk. The implementation examples should be checked carefully: the article’s descriptions and code may differ in how they define the opening condition and the lookback period.

Key ideas

• The screen combines daily amplitude above 1%, a limit-up event in the prior 25 days, and an absolute opening move below 6%.
• The rationale is to find volatile stocks with recent market interest without selecting the largest opening gaps.
• The article suggests grouping by industry or market capitalization and adding financial data.
• The screen is based on historical observations and has no reported performance test.

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