Screening for Three Down Days with Moderate Turnover and Positive Institutional Flow

Summary

This Chinese stock screen combines a turnover band, three consecutive declining sessions, and positive institutional or large-order net inflow. The stated rationale is that turnover indicates trading activity, while institutional flow may offer a clue about market participation. The article supplies a technical-indicator formula and a Python example that checks recent closing prices and the latest reported net main-fund amount.

The material is a rule description rather than a tested strategy: it reports no historical performance, benchmark, or transaction-cost analysis. Its risk discussion notes that positive inflow alone omits possible institutional outflows and may be unreliable in a weak market. The examples also leave implementation details unclear, including how the turnover range is applied and whether the code’s closing-price comparisons correspond exactly to three bearish candles. The author recommends considering company fundamentals, but does not specify or evaluate additional filters.

Key ideas

• The screen selects stocks with turnover between 3% and 12%, three consecutive down sessions, and positive institutional flow.
• It treats institutional buying as a possible signal of future market behavior, not as proof of it.
• The provided examples do not establish historical profitability or account for trading costs.
• The article warns that ignoring institutional outflows can weaken the signal in poor markets.

Tags

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