Chinese Stock Screen for Three Consecutive Down Days and High Range

Summary

This document proposes screening Chinese equities for a daily price range above one percent, codes beginning with 60, and three consecutive declining closes. The range condition is presented as a way to identify stocks with elevated movement, while the code prefix restricts the universe to a particular group of listed shares. The three-day decline is framed as a possible source of short-term opportunities, and the document supplies formula and Python examples for applying the filters.

The screen is a simple technical rule rather than a complete investment process. The document warns that single technical indicators may not capture a stock’s value or risk and that short-term opportunities are uncertain. It recommends combining the conditions with additional technical and fundamental factors or a multi-factor model. No backtest, sample results, or evidence that the decline predicts a rebound is given, so the proposed opportunity should be regarded as a hypothesis requiring evaluation.

Key ideas

• The proposed universe is restricted to stocks whose codes begin with 60.
• The screen requires a daily high-low range above one percent and three consecutive declining closes.
• The document characterizes the decline as a possible short-term opportunity but gives no evidence of reversal performance.
• It recommends combining the technical conditions with fundamental analysis or a multi-factor approach.

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