Screening Stocks by Turnover, Profit Growth, and a Morning Star Pattern

Summary

This equity screen combines a daily turnover range of 3% to 12%, year-over-year net profit growth greater than 20% and no more than 100%, and a candlestick pattern described as a morning star. The post presents formula and Python examples for applying these filters and mentions ranking candidates by popularity in one implementation and sorting by turnover in another. The examples do not fully agree: the Python section refers to a doji-star indicator, and the financial-data query uses a specific reporting period, so users would need to verify that the code matches the stated rules.

The approach blends a liquidity or activity filter, an earnings-growth criterion, and a technical entry signal. The author notes that these filters leave gaps in fundamental analysis and that candlestick patterns can produce false signals. Valuation measures and confirmation from additional technical indicators are suggested. The document supplies no backtest, selected-stock results, or evidence that the combined screen generates profitable trades.

Key ideas

• The screen requires turnover between 3% and 12% and year-over-year net profit growth above 20% and at most 100%.
• It adds a candlestick pattern intended to signal a possible reversal.
• The examples use differing pattern terminology and implementations, which should be reconciled before use.
• The author warns that the screen omits broader company fundamentals and that patterns can generate false signals.
• No performance results or backtest are provided.

Tags

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