A Stock Screen for Seven-Day Declines and Moderate Turnover

Summary

This Chinese-language post describes a stock selection rule using turnover and recent price weakness. It screens for shares with turnover between 3% and 12%, seven consecutive declining sessions, and a current maximum decline between 4% and 5%. The article includes example screening logic and a Python-style implementation, though the code and platform-specific indicator names may require adaptation to the data source and trading system.

The author frames the screen as a way to identify stocks in a downtrend while constraining the size of the current decline. No backtest results or performance evidence are presented. The post cautions that the rule relies heavily on price declines and turnover, leaving out company fundamentals, news, earnings changes, and industry conditions; it may select unsuitable stocks. It suggests combining the screen with fundamental and technical measures, but does not define or test a combined strategy. The rule is therefore a screening hypothesis rather than a demonstrated source of returns.

Key ideas

• The screen requires turnover between 3% and 12% and declines over seven consecutive sessions.
• It further limits candidates to stocks with a current maximum decline between 4% and 5%.
• The post supplies platform-oriented screening logic but reports no backtest or performance evidence.
• Price-only selection can overlook fundamentals, news, earnings changes, and industry developments.

Tags

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