Screening Chinese Stocks for Seven Consecutive Days of Declines

Summary

This Chinese equity screening rule selects stocks with amplitude above 1% after excluding Beijing stocks and stocks outside mainland China, then looks for a sequence of seven declining sessions. The note gives a formula-based description and a Python-style procedure that checks recent low prices for a downward sequence. It frames the filter as a way to identify volatile shares in a short-term downtrend.

The article does not report backtests, returns, or evidence that a seven-day decline predicts an opportunity. It warns that a short price pattern ignores company results and industry prospects, may cause traders to miss other opportunities, and can reverse. It suggests adding fundamentals, trading volume, and broader historical context. The screening logic is therefore a candidate filter, not a complete entry, exit, or risk-management plan; the platform-specific formulas also need careful validation before use.

Key ideas

• The screen excludes Beijing listings and non-mainland Chinese stocks, then applies an amplitude threshold above 1%.
• It seeks stocks whose prices have declined over seven consecutive trading sessions.
• The accompanying examples describe formula and code implementations but provide no backtest or return evidence.
• The note warns that persistent declines can reverse and recommends adding fundamental and volume information.

Tags

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