A-Share Screen for Turnover, Ten-Day Average Price, and a Three-Candle Pattern

Summary

This document describes a short-term Chinese stock screen combining turnover, opening price relative to the ten-day moving average, and a three-candle pattern labeled “morning star.” It specifies turnover from 3% to 12%, an open within 5% of the moving average, and a sequence of a down candle, an up candle, then a down candle. It also gives example formulas and Python-style screening logic for applying these conditions to market data.

The article argues that the screen may identify active stocks near a trend reference, but provides no performance results or validation. It warns that technical patterns can produce false signals and that the screen omits company finances and competitive position, making it unsuitable as a stand-alone basis for long-term investing. The examples are not fully consistent: the Python snippet adds a technology or information-sector filter absent from the stated final rules, while the described candle sequence is not enough on its own to establish a conventional morning-star pattern. These conditions should therefore be treated as a proposed screen, not a validated strategy.

Key ideas

• The screen selects stocks with turnover between 3% and 12%.
• The opening price must fall within 5% of the ten-day closing-price average.
• The example candle condition checks a down, up, down sequence across three sessions.
• The document gives no backtest or evidence that the screen is profitable.
• It recommends adding company and industry analysis and confirming signals with other indicators.

Tags

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