Screening for High-Amplitude Stocks After Seven Consecutive Declines

Summary

This Chinese equity screening example selects stocks with an intraday high-low range greater than 1% during 2021, after seven consecutive sessions in which the close is below the prior close. It frames the range condition as evidence of greater volatility and the losing streak as a sign of weak sentiment or downward price pressure. Formula and Python examples are included to illustrate how the conditions might be applied.

The article proposes the output as a watchlist, not a fully specified trading system, and supplies no backtest or performance evidence. It notes that a long losing streak can be followed by a sharp reversal and that the screen omits company fundamentals. It suggests combining the pattern with valuation measures and other technical indicators, such as moving averages or RSI. The Python example’s preliminary filtering and its later range calculation do not clearly implement identical conditions, so the implementation would need review before use.

Key ideas

• The screen combines an intraday range above 1% with seven consecutive lower closes.
• The date filter limits the example to 2021.
• The article provides formula and Python sketches but reports no measured strategy results.
• A prolonged decline can reverse, and the screen omits fundamental information.

Tags

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