A Stock Screen Combining Turnover, Low K, and Seven-Day Declines

Summary

This post describes a stock selection screen that combines a turnover range of 3% to 12%, a K value below 20, and a sequence of seven declining sessions. The stated idea is to find stocks that have fallen for several days, potentially identifying a turning point. It also mentions adding company fundamentals and other quantitative indicators to reduce reliance on price action alone.

The post supplies a screening expression and a Python example, but the implementation does not clearly match the stated rule: its price comparison appears to compare one close with an average of other closes rather than verify that each day’s average is below the preceding day’s. It gives no backtest results or evidence that the screen predicts reversals. The text itself acknowledges that the method may miss rising stocks and that selected companies can still carry valuation and business-performance risks; the proposed growth and risk filters are not fully specified.

Key ideas

• The screen combines a turnover band, a K value below 20, and a seven-session decline condition.
• The post frames a prolonged decline as a possible way to identify a market turning point.
• It suggests adding fundamental information and other quantitative factors to the screen.
• The Python example does not clearly implement the described sequence of daily declines.
• No performance results are supplied, and the screen may miss rising stocks or select risky companies.

Tags

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