Screening Stocks by Reversal Pattern, Amplitude, and Turnover

Summary

This Chinese-language post describes a stock selection screen combining three conditions: daily amplitude above one percent, a reversal or engulfing-style pattern, and prior-day actual turnover between three and twenty-eight percent. It provides formula and Python examples for calculating the conditions, filtering a stock universe, and sorting qualifying names by heat ranking. The post presents amplitude as a measure of price movement and turnover as a liquidity consideration.

The author cautions that a single prior-day turnover observation can fluctuate and may exclude otherwise valuable companies. Valuation measures such as price-to-earnings or price-to-book ratios are suggested as possible additions for identifying longer-term value. No backtest, return series, or risk-adjusted performance is supplied, so the screen should be understood as a proposed selection rule rather than evidence of a profitable strategy. The indicator implementation details may also require verification across data providers.

Key ideas

• The screen requires amplitude above one percent, a reversal pattern, and prior-day actual turnover within the stated range.
• The post offers formula and Python examples for applying the selection criteria to stocks.
• It uses turnover as a liquidity screen, but acknowledges that a single day can be unrepresentative.
• Valuation ratios are suggested as possible supplementary filters, without reported performance testing.

Tags

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