Screening for Wide-Ranging, High-Volume Stocks After Three Down Closes

Summary

This Chinese stock-selection proposal looks for shares with daily amplitude above 1, current volume above 10,000 lots, an opening price above the prior close, and three consecutive declining closes. Its rationale combines activity and volatility filters with a weak recent price sequence, seeking stocks that may be poised to rebound. The document gives a stock-screening formula and a Python example, and suggests considering Bollinger Bands and RSI as additional technical inputs.

The article does not provide a backtest or evidence that three declining closes predict a rebound. It explicitly cautions that the method relies on technical conditions, ignores company fundamentals and industry context, and cannot guarantee a recovery. The example implementations also warrant review: the written description, formula, and Python conditions may not all encode the same amplitude and volume requirements or the same three-day sequence. Any practical use would require validating the data fields and signal logic, then testing it with explicit exit and risk rules.

Key ideas

• The proposed screen combines amplitude, current trading volume, an opening gap above the prior close, and three declining closes.
• The intended rationale is to find active stocks with recent weakness that might rebound.
• The article suggests Bollinger Bands and RSI as possible additional technical filters.
• It provides no evidence that the pattern predicts a rebound and warns that fundamentals and industry conditions are omitted.
• The formula and Python example should be checked for consistency with the stated screening conditions.

Tags

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