Chinese Stock Screening with Turnover, Three Down Days, and MACD

Summary

This Chinese equity screening note selects stocks with turnover between 3% and 12%, three consecutive declining sessions, and MACD above its zero line. It presents the pattern as a way to identify shares with possible short-term downside while retaining potential for future growth, although that framing combines a bearish recent-price pattern with a positive MACD condition. The article supplies a formula reference and a Python example that retrieves daily stock data, checks the recent declines, calculates MACD, and collects qualifying symbols.

The note gives no backtest, performance record, or evidence that the conditions predict subsequent returns. It identifies MACD as a possible source of false signals and recommends combining it with other technical measures, such as moving averages or KDJ, as well as fundamental analysis. The code illustration is limited: it focuses on the MACD histogram and recent percentage changes, while the stated turnover range is not visibly enforced in the sample logic. The proposed screen is therefore a set of candidate filters, not a validated entry, short-selling, or risk-management plan.

Key ideas

• The screen combines turnover between 3% and 12%, three consecutive down sessions, and MACD above zero.
• The article presents the pattern as a possible way to identify short-term downside candidates.
• It provides a data-retrieval and indicator-calculation example but reports no strategy performance evidence.
• The example code does not visibly implement every stated filter, including the turnover range.
• The author warns that MACD can mislead and suggests adding other technical and fundamental information.

Tags

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