Screening for Moderate Turnover, Three Down Days, and a Rising Moving-Average Trend

Summary

This post presents a stock screen for shares with turnover between 3% and 12%, three consecutive declining sessions, and a 20-day moving average above the 120-day average. The intended combination seeks actively traded stocks that have recently pulled back while retaining a longer-term trend condition. The post includes example formula logic and a Python-style data workflow, though the code does not consistently calculate the stated moving averages or turnover conditions.

The author notes that the approach relies heavily on short-term price and volume behavior and may overlook fundamentals, sector characteristics, or high-growth shares outside the favored large-cap profile. Possible refinements include adding fundamental and industry measures, using a broader scoring system, and applying stop-loss and take-profit rules. The document gives no backtest results, performance statistics, or clear risk sizing method. Its screening rule should therefore be treated as a hypothesis for further validation, and the implementation details require checking against the intended signals.

Key ideas

• The screen combines turnover between 3% and 12% with three consecutive declining sessions.
• It requires the 20-day moving average to remain above the 120-day average.
• The rule aims to find a short-term pullback within a longer-term trend condition.
• The post recognizes that technical filters omit fundamentals and sector context.
• No performance evidence is given, and the sample code needs validation.

Tags

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