Screening for Seven-Day Declines Within a Longer-Term Uptrend

Summary

This Chinese equity screen looks for stocks with turnover between three and twelve percent that have declined for seven consecutive sessions while their 20-day moving average remains above the 120-day average. The combination is intended to find actively traded stocks experiencing a short-term pullback within a stronger longer-term trend. The post supplies example selection logic and code to illustrate the turnover, consecutive-decline, and moving-average conditions.

The document argues that the screen may identify stocks of relatively better quality during a temporary setback, but it provides no test results or evidence that the setup predicts a rebound. It notes that moving-average signals can mislead when the trend is unclear or sudden events occur, and that focusing on a run of declines can miss longer-term opportunities. The examples also require adaptation to the data source and indicator definitions; the exact handling of seven daily declines should be checked before implementation.

Key ideas

• The screen restricts candidates to a stated turnover range.
• It requires seven consecutive daily declines and a 20-day average above the 120-day average.
• The setup frames recent weakness as a pullback within a longer-term uptrend.
• The post provides example formulas but no backtest or performance evidence.
• Trend shifts and sudden events can make the moving-average and decline signals unreliable.

Tags

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