Chinese Stock Screen for Seven-Day Declines and Active Trading

Summary

This stock selection method combines three conditions: turnover between 3% and 12%, first-level bid volume greater than first-level ask volume, and closing prices falling for seven consecutive trading days. It aims to find shares that have recently weakened while retaining a measure of trading activity and visible buy-side volume. The document also provides example implementations for a Chinese stock screening platform and Python data queries, but does not report backtest results or evidence that the combination predicts returns.

The article cautions that relying on technical conditions alone can omit company fundamentals and other relevant information. A sustained decline may also be followed by a short-term rebound, so the screen is presented as a starting point for further analysis rather than a complete trading decision. Suggested additions include valuation, financial statements, industry information, and other technical indicators. The supplied formulas and code are references; the text does not establish that their definitions or data handling are equivalent across platforms.

Key ideas

• The screen requires turnover from 3% to 12% and first-level bid volume above first-level ask volume.
• It selects stocks whose closing prices have declined for seven consecutive trading days.
• The article offers example platform formulas and Python screening code but provides no performance test.
• Technical screening alone can miss fundamental information, and a falling stock may rebound.

Tags

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