Screening for Seven-Day Declines, Turnover, and Recent Trading-List Activity

Summary

This note describes a Chinese stock screen requiring turnover between 3% and 12%, an appearance on the previous day’s trading activity list, and a seven-day sequence of falling closing prices. It focuses on stocks with both notable recent declines and signs of trading activity. The article includes formula and Python examples that encode turnover and activity-list conditions alongside a rolling-low price test.

The author cautions that a long losing streak can identify weak or distressed companies rather than attractive opportunities. The method omits fundamental analysis and broader technical context, and the note suggests adding financial and market indicators or making the filters more flexible. It provides no backtest or evidence that the pattern leads to a rebound. The supplied rolling-low formula may not reliably express seven consecutive down closes, so the implementation should be verified against the intended rule.

Key ideas

• The screen combines turnover between 3% and 12% with prior-day trading-list activity.
• It seeks stocks whose closing prices have declined for seven consecutive days.
• A sustained decline can select fundamentally weak stocks, so the signal needs additional context.
• The article offers no performance evidence, and its rolling-low example may not implement consecutive declines correctly.

Tags

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