A-Share Screen Using Three Down Days, Turnover, and a Rebound Condition

Summary

This note describes an A-share stock-selection rule combining turnover between 3% and 12%, three consecutive declining sessions, and a close above the prior day's low. The intended pattern is a short-term pullback followed by a close recovering above a recent intraday reference point. The document includes a technical-indicator formula and a Python example, though the examples do not implement every stated condition consistently.

The article frames the screen as a way to identify stocks with recent weakness and a possible rebound, but supplies no test results or evidence of predictive value. It acknowledges that the rule gives limited attention to profitability, valuation, and other fundamentals, and suggests adding such measures. The stated conditions should therefore be treated as a technical screening hypothesis. Its implementation requires care: the code's comparisons and handling of recent bars may not exactly match the written definition of three declining candlesticks and the prior day's low.

Key ideas

• The stated rule requires turnover between 3% and 12% and three consecutive down sessions.
• The current close must exceed the previous session's low.
• The pattern aims to screen for a rebound after short-term price weakness.
• The article gives no empirical results and notes that fundamental factors are largely omitted.
• The code examples should be checked against the written conditions before use.

Tags

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