Screening Equities for High Activity and Seven Consecutive Declines

Summary

This document describes a Chinese equity screen that combines an amplitude threshold, high current trading volume, an opening price above the prior close, and seven consecutive declining sessions. It frames the setup as a way to find heavily traded, volatile stocks that may be oversold after a sustained fall. The article also suggests supplementing these technical conditions with valuation, profitability, company, industry, and macroeconomic information.

It provides an indicator formula and a Python example that adds money-flow data and a main-board listing filter. However, it offers no backtest, performance figures, or evidence that a rebound follows the decline. The screening description and code also do not align perfectly: the Python example tests different opening-price and money-flow conditions, and it does not visibly implement the stated amplitude and volume filters. Consecutive losses can continue, and the proposed fundamental checks are recommendations rather than a defined or tested part of the strategy.

Key ideas

• The proposed screen combines high amplitude, trading volume above its threshold, a higher open, and seven consecutive declines.
• The article interprets sustained declines as a possible oversold setup, but does not establish that a rebound will follow.
• It recommends adding company, valuation, industry, and macroeconomic analysis to technical filters.
• The Python example includes money-flow and listing-board checks that are not fully consistent with the stated screen.

Tags

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