A Turnover and Buying-Pressure Screen for Rising Chinese Stocks

Summary

This document describes a Chinese equity screening rule intended to find stocks in an early rising phase. It filters for daily turnover between 3% and 12%, an outside-volume to inside-volume ratio above 1.3, and positive price changes across recent one-, five-, and twenty-day periods. The examples also add a recent volume expansion condition and rank selected stocks using a weight based on average turnover, volume, and current price.

The post provides SQL-like and Python-style illustrations, but no backtest, performance measurements, or validation of the screen. It warns that the approach relies heavily on technical signals, that identifying the start of a major rise can be subjective, and that fundamentals are omitted. Its suggestion to combine technical, fundamental, and sentiment inputs is general guidance rather than a tested improvement. The implementation examples also differ in some details, so they should be checked against the intended rules before use.

Key ideas

• The screen combines a turnover band with an outside-volume to inside-volume ratio above 1.3.
• It looks for price appreciation over one, five, and twenty trading days as a proxy for an emerging rise.
• The Python example also requires recent volume to exceed its prior-period average by a multiple.
• The post offers no performance test and flags subjective trend-start judgments and missing fundamental analysis as limitations.
• The SQL-like and Python examples differ in some conditions and should be reconciled before implementation.

Tags

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