Stock Screening with Wide Swings, Rising Lows, and Recent Limit-Ups

Summary

The article proposes a Chinese stock screen combining three price-based conditions: amplitude above a threshold, a rising bottom pattern, and at least one limit-up move within the prior 25 days. It frames wide swings and rising lows as technical signals and a recent limit-up as a possible sign of market enthusiasm. The supplied examples describe implementing the filter in a local stock-screening formula and in Python using daily price histories.

The article cautions that the screen emphasizes market sentiment and technical behavior while omitting fundamentals and operational risks. It also warns that large price fluctuations can lead to mistaken selections. Suggested extensions include adding indicators such as MACD or RSI and considering fundamentals, risk tolerance, and investor objectives. The provided code is illustrative: the article does not report a backtest, define the “rising bottom” calculation rigorously, or show evidence that the combined conditions predict future returns.

Key ideas

• The screen selects stocks with large amplitude, rising bottoms, and a limit-up event in the preceding 25 days.
• The author interprets the price conditions as technical and sentiment-related signals.
• The article warns that the filter omits fundamentals and operational risks and may misclassify volatile stocks.
• MACD, RSI, fundamental analysis, and investor-specific risk adjustments are suggested as possible additions.
• No backtest or predictive performance evidence is provided.

Tags

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