Screening Stocks by Turnover, Recent Gains, and Seven Falling Sessions

Summary

This post describes an equity screen using turnover between 3% and 12%, a positive return over the prior ten days below 35%, and seven consecutive sessions of falling closing prices. The author frames the falling sequence as a way to identify stocks undergoing a pullback, while the turnover and return conditions constrain trading activity and recent performance.

The post warns that the screen focuses on technical data and can overlook company fundamentals, sector conditions, and short-term market effects. It recommends adding financial strength, industry context, shareholder holdings, valuation, and profitability measures. The included platform formula and Python example are references rather than a complete implementation: the Python checks an average of recent percentage changes, which does not establish seven consecutive declines, and it does not implement all stated filters. No backtest results or evidence of profitability are provided.

Key ideas

• The proposed screen combines a turnover range, a bounded positive ten-day return, and seven consecutive declining closes.
• The author treats the declining sequence as a possible pullback signal, not proof of a lasting trend.
• Fundamental and sector measures are suggested to complement the technical filters.
• The sample code does not fully implement the stated conditions, and no performance evidence is provided.

Tags

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