Screening for Moderate Turnover, Rising DEA, and Reversal Patterns

Summary

This Chinese equity screen requires turnover between 3% and 12%, a rising DEA condition, and a reversal pattern described as a rebound after a short pullback. The note frames turnover as a measure of trading activity and rising DEA as evidence of an upward trend. Its formula and sample function express the conditions as a combined stock-selection filter.

The document provides no backtest, market sample, or performance evidence. It cautions that the rule may select weak stocks and may miss shares in longer declines or sideways markets. It recommends testing additional technical indicators and studying which reversal signals have stronger behavior. The screen is thus a heuristic entry filter, not a demonstrated strategy; the reversal definition and indicator calculation would require validation.

Key ideas

• The screen combines turnover between 3% and 12% with a rising DEA condition.
• It seeks a reversal after a short pullback while prices remain above prior lows.
• The note does not present performance testing or empirical support.
• The author flags weak selections and missed declining or sideways stocks as risks.

Tags

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