Screening Stocks by Turnover, Reversal, and Morning Star Conditions

Summary

This stock screen combines a turnover-rate range of 3% to 12% with a reversal condition and a pattern labeled a Morning Star. The accompanying indicator logic adds a large intraday range relative to the previous close, declining short-, medium-, and longer-term moving averages, and a close above the prior session’s open. It also limits the universe to listed Shenzhen stocks. The stated rationale is to find active stocks showing a possible technical turn after weakness.

The document warns that the screen omits company fundamentals and that pattern-based signals can be unreliable when market conditions or data quality vary. It suggests adding fundamental measures such as earnings and revenue growth, but reports no backtest, sample, or realized performance. The supplied formulas and code are references rather than a fully validated implementation; in particular, the prose description and listed conditions do not fully establish how the named pattern is defined. Results would need careful data and signal validation.

Key ideas

• The screen uses turnover between 3% and 12%, a reversal condition, and a Morning Star label.
• The formula reference includes a large intraday range, declining moving averages, and a close above the previous open.
• The universe is restricted to listed stocks on the Shenzhen exchange.
• The document notes that the technical screen omits fundamentals and supplies no performance evidence.
• The stated pattern and its implementation require validation before the screen can be assessed.

Tags

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