A Chinese Stock Screen for Turnover, Daily Gains, and Reversal Candles

Summary

This stock-selection rule screens for main-board shares with turnover between 3% and 12%, a daily gain above 1%, and a reversal-style candle condition. The stated pattern requires the current open to exceed the prior close while the current close falls below the prior open. The document also includes reference indicator logic and a Python-style example that checks historical prices and turnover for each stock.

The author describes the screen as a way to find relatively volatile stocks and notes that it omits company fundamentals and industry context, leaving it exposed to market-price fluctuations. There is no backtest, performance evidence, or detailed execution plan. The accompanying code and indicator references are not fully consistent with the written criteria, including differences in exchange and index filters, so the intended universe should be clarified before implementation.

Key ideas

• The screen combines a turnover range with a minimum daily percentage gain.
• Its candle condition requires an opening gap above the prior close and a close below the prior open.
• The post frames the pattern as a volatility-oriented selection rule.
• It acknowledges that the screen excludes fundamentals and industry analysis.
• The examples contain filters that differ from the written rule, and no performance evidence is supplied.

Tags

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