Screening for Seven Down Days with a Weekly Moving Average Crossover

Summary

This post outlines a Chinese stock screen requiring turnover between 3% and 12%, seven consecutive declining sessions, and a weekly five-period moving average crossing above the ten-period average. It supplies example indicator logic and Python-style pseudocode for applying the conditions to grouped price data. The screen pairs recent weakness with a possible change in the intermediate trend, using turnover as an additional activity filter.

The author describes the method as a technical filter and notes that it omits company fundamentals, industry developments, policy changes, and other causes of price movement. The suggested improvement is to assess financial strength and business prospects alongside technical signals, or investigate additional factors. The document provides no backtest, sample, or measured returns, and its code examples may require adaptation to the data source and indicator definitions. The crossover and decline conditions therefore remain a hypothesis to evaluate, not evidence of an effective trading edge.

Key ideas

• The proposed screen requires turnover within a stated band and seven consecutive down sessions.
• A weekly five-period average crossing above a ten-period average serves as the trend-change filter.
• The post includes formula and Python-style examples, with data-field adaptation noted.
• The author warns that technical filters omit fundamentals and broader market drivers.
• No empirical performance evidence is supplied.

Tags

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