Screening Mainland Stocks for High Range and Three Consecutive Declines

Summary

This stock screen selects shares with a daily high-low range above 1%, excludes Beijing-listed stocks, and requires three consecutive closing-price declines. The stated idea is to identify stocks showing short-term weakness alongside meaningful price movement. The post provides indicative formulas and Python-like selection steps, then discusses adding financial and technical filters, including valuation measures and moving-average or MACD indicators.

The document warns that a short-term technical screen can mistake temporary adjustment for persistent weakness and ignores broader market conditions and fundamentals unless additional filters are added. It offers no backtest, return statistics, or evidence that the screen predicts a rebound or favorable performance. Its regional exclusion is described inconsistently, and the sample implementation includes further selection logic beyond the basic three conditions, so the precise intended universe and final rule set are unclear.

Key ideas

• The basic screen requires a daily price range above 1% and three consecutive lower closes.
• It excludes Beijing-listed shares from the selection universe.
• The post suggests adding financial ratios and technical indicators to refine the screen.
• The author identifies limited fundamental context and false signals from short-term weakness as risks.
• No performance results are provided to validate the selection rules.

Tags

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