Screening Chinese Stocks by Turnover, Reversal Candles, and Stochastic K

Summary

This stock screen combines a daily turnover range of 3% to 12%, a reversal or engulfing-style candle condition, and a stochastic K reading at or below 20. The article presents screening logic and sample indicator calculations: it derives ratios from the day’s high and low relative to the prior close, then computes the stochastic oscillator. It also shows a platform formula and a Python example intended to identify qualifying stocks.

The document provides no backtest, benchmark, transaction-cost estimate, or evidence that the screen predicts returns. It flags that the rules omit company fundamentals and that relying on candle patterns and technical measures can expose the selection to uncertain market conditions. It suggests combining fundamental data and additional indicators, adapting the conditions to market trends, or using a multi-factor approach. The sample code and formulas should be checked before use: the article’s written reversal condition and formula references are not fully consistent, and the example data fields and calculations may require adjustment for a real dataset.

Key ideas

• The screen requires turnover between 3% and 12% and a stochastic K value no higher than 20.
• A candle reversal condition is represented using ratios based on the current range and prior close.
• The article provides sample formula and Python approaches, but no measured strategy results.
• The author notes that technical-only screening omits company fundamentals and carries risk.
• The written rules and sample formulas contain inconsistencies that should be resolved before implementation.

Tags

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