Screening for Recent Limit-Up Moves and Seven Consecutive Down Days

Summary

This Chinese equity screening rule combines a turnover range of 3% to 12%, at least one limit-up event in the prior 25 days, and seven consecutive sessions in which the close is no higher than the open. It is intended to find stocks with recent signs of market interest that have since weakened, making the screen a possible starting point for further review rather than a complete trading system.

The document explains that the consecutive down-day condition may sharply reduce the candidate pool and miss stocks that later attract attention. It recommends considering fundamental and technical measures alongside the screen, and using risk controls such as position diversification or stop levels. It offers formula and sample implementation references, but provides no backtest, return evidence, holding period, entry or exit rules, or transaction-cost analysis. The historical-data caveat is explicit: past behavior does not ensure future results.

Key ideas

• The screen requires turnover between 3% and 12%, a recent limit-up event, and seven consecutive down sessions.
• The setup combines prior market strength with a subsequent run of weak daily closes.
• The strict consecutive-decline filter may leave few candidates and exclude potential opportunities.
• The rule is presented as an initial screen that needs additional analysis and risk controls.
• No performance test or complete trade management plan is provided.

Tags

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