Screening Stocks by Turnover, Rising KDJ, and Three-Day Declines

Summary

This post describes a stock screen combining three conditions: turnover between 3% and 12%, a rising KDJ K value, and negative daily returns for three consecutive sessions. The author frames the consecutive declines as a way to look for stocks that may be due for a rebound after a fall or pullback. A formula example and Python-style pseudocode show how the turnover range, KDJ comparison, and recent price changes could be combined.

The document offers no backtest, sample results, or evidence that the selected stocks rebound. It cautions that broad market direction, capital flows, and investor sentiment may affect outcomes, and that repeated losses do not guarantee a recovery. It suggests adding technical and fundamental information and considering liquidity and valuation. The examples are illustrative rather than a fully specified trading system: they do not define an entry, exit, holding period, position size, or portfolio risk process.

Key ideas

• The screen requires turnover between 3% and 12% and a positive change in the KDJ K value.
• It also selects stocks with negative returns across three consecutive sessions.
• The proposed rationale is that a recent decline might precede a rebound, but no evidence is supplied to establish that edge.
• The author recommends considering market conditions, liquidity, valuation, and additional fundamental or technical information.
• The rules do not specify trade exits, holding periods, or position and portfolio risk controls.

Tags

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