Screening for Seven-Day Declines, Turnover, and a Price Rebound
Summary
The screen selects stocks with turnover between 3% and 12% after seven consecutive daily closes below the prior close, provided the latest close is above the previous day's low. The stated logic combines a trading-activity filter with a prolonged decline and a possible short-term recovery signal. The document includes a formula reference and a Python example that applies these conditions to grouped price data.
No performance results or backtest evidence are provided. The author notes that the screen omits company fundamentals and other technical indicators, and suggests adding valuation measures or indicators such as KDJ and MACD. The closing-price condition is described inconsistently in the prose and formula, so its intended comparison should be checked before implementation; the Python example compares the latest close with the previous low.
Key ideas
- The screen requires turnover between 3% and 12%.\nIt looks for seven consecutive sessions in which the close falls below the previous close.\nThe latest close must exceed the prior session's low in the Python example.\nThe document gives no evidence of trading performance and flags omitted fundamental and technical factors.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.