Stock Screen Combining Turnover, Ten-Day Average Proximity, and Prior Turnover
Summary
This Chinese equity screen selects stocks with current turnover between 3% and 12%, an opening price within 5% of the ten-day moving average of closing prices, and prior-day actual turnover between 3% and 28%. The document frames the combination as a way to identify shares with recent market attention while requiring the open to remain near a short-term average. It provides equivalent indicator and data-frame examples for expressing the conditions.
No backtest, sample period, or outcome data is supplied, so the screen’s effectiveness is unestablished. The article cautions that it focuses heavily on technical patterns and may overlook company fundamentals or miss stocks not yet recognized by the market; it also raises overfitting risk. It proposes combining the screen with other approaches and considering fundamental analysis, but offers no tested method for doing so. The rule is therefore a screening template rather than a validated strategy.
Key ideas
- Current turnover must be between 3% and 12%.\nThe opening price must fall within 5% of the ten-day closing-price average.\nPrior-day actual turnover must be between 3% and 28%.\nThe article gives no backtest results or evidence of profitability.\nTechnical screening can miss fundamental factors and may be overfit.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.