Stock Screening with Turnover, Bid Pressure, and Rising Lows

Summary

This document proposes selecting stocks whose turnover lies between 3% and 12%, whose best bid volume exceeds best ask volume, and whose price bottoms are rising. The rising-bottom pattern is treated as a sign of improving market confidence, while the turnover band is intended to capture stocks with adequate trading activity. No formula or executable Python implementation is supplied.

The article gives a qualitative explanation rather than measured evidence: it includes no backtest, sample definition, or reported results. It warns that the screen relies too heavily on technical factors and ignores fundamentals. Possible extensions include adding RSI or MACD and other measures of market direction, as well as fundamental inputs. The conditions alone do not define entry timing, exits, position sizing, or risk limits, so they are best understood as a preliminary screening idea rather than a complete strategy.

Key ideas

• The proposed screen combines turnover from 3% to 12%, stronger best-bid than best-ask volume, and rising price lows.
• Rising bottoms are interpreted as improving confidence, and turnover as a measure of liquidity.
• The document provides no implementation code or empirical performance evidence.
• It warns that technical-only screening omits fundamentals and suggests adding other indicators and context.

Tags

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