Combining Net Buying, Three Down Days, and a Moving Average Filter

Summary

This A-share stock screen combines three filters: reported net buying above 5% for the day, three consecutive declining sessions, and a 20-day moving average above the 120-day moving average. The article interprets net buying as possible institutional accumulation and the moving-average relationship as a broader trend filter, while the recent declines may identify a pullback. It offers pseudocode and a data-source example, but no backtest, performance figures, or evidence that the net-buying measure reliably represents institutional activity.

The note cautions that technical indicators can be unreliable during sharp price moves and that buyers may sell soon after the signal appears. It suggests adding other technical measures and fundamental valuation inputs such as price-to-earnings or price-to-book ratios. The included code snippets have unclear or inconsistent filtering logic, especially for identifying three consecutive down days, so they should not be treated as a validated implementation. The article also leaves entry, exit, and risk-management rules undefined.

Key ideas

• The screen combines daily net buying above 5%, three declining sessions, and the 20-day average above the 120-day average.
• The article interprets the conditions as possible accumulation during a pullback, but supplies no empirical validation.
• The code examples do not clearly implement the consecutive-decline condition.
• The author proposes adding technical and fundamental filters while noting that buyers may quickly reverse their positions.

Tags

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