Screening Declining Stocks by Turnover and Seven-Day Price Weakness

Summary

This stock screen combines a turnover-rate range with seven consecutive declining sessions. Its initial conditions require turnover between 3% and 12%, plus current turnover above 2% and below 9%; together, these overlapping limits make the effective current turnover range greater than 3% and less than 9%. The article frames the rule as a way to find actively traded stocks whose prices have recently weakened. It also provides formula and Python examples, with optional moving-average, RSI, and MACD checks in the code.

The document supplies no backtest or evidence that the screen identifies attractive entries or rebounds. It warns that the rule omits other technical, market, industry, and fundamental considerations, and suggests adding broader indicators and company measures. The proposed additions do not resolve how to handle conflicting signals or define exits and position sizing. The screen is best understood as a preliminary filter; its turnover conditions and declining-price requirement alone do not establish investment value or control risk.

Key ideas

• The stated screen combines seven declining sessions with turnover constraints.
• The overlapping turnover rules imply a current turnover rate greater than 3% and less than 9%.
• The article suggests adding technical and fundamental filters, including moving averages, RSI, MACD, ROE, and EPS.
• No performance test or evidence of predictive value is provided.
• The screen does not specify exits, position sizing, or a complete risk-control process.

Tags

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