Stock Screening with Amplitude, Control, and Relative Volume

Summary

The document describes a simple Chinese stock selection rule using price amplitude, a measure labeled “today’s control,” and relative trading volume. It sets amplitude above 1, control above 21, and volume between 1.5 and 6 times the average volume over the previous 20 days. It also provides example scoring and implementation logic for screening stocks.

The author notes that the rule focuses on short-term price activity and volume, omitting fundamental measures and other trading-volume indicators. The proposed refinements are to combine fundamental and technical signals and assess relative volume alongside turnover or traded value. No performance results or backtest evidence are provided, and the source’s example implementations use inconsistent thresholds and definitions for amplitude and control. The rule is presented as a starting point that needs adaptation and validation.

Key ideas

• The screen combines price amplitude, a control-related measure, and relative volume.
• Relative volume is specified as 1.5 to 6 times the average over the previous 20 days.
• The document recommends adding fundamental and technical measures to broaden the analysis.
• The examples contain inconsistencies, so the screening thresholds and variable definitions need careful review.

Tags

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