Stock Screening with Turnover, Opening Price, and Moving Averages

Summary

This document describes a Chinese equity screening rule combining a turnover range with the opening price’s distance from the 10-day moving average and the relationship between 5-day and 10-day averages. The screen requires turnover from 3% to 12%, an opening price within 5% of the 10-day average, and the 5-day average above the 10-day average. It presents the conditions as a way to find stocks with trading activity and a rising short-term price trend. A formula and a Python example illustrate how to apply the filters to historical price data.

The document provides no backtest, performance comparison, or evidence that the screen predicts future returns. Its own discussion notes that it omits company fundamentals and may return too many candidates in a bull market. It suggests combining technical conditions with other indicators and reviewing fundamentals, but does not define a complete entry, exit, or risk-management plan. The described filters are therefore a candidate-selection method rather than a tested standalone trading strategy.

Key ideas

• The screen selects stocks with turnover between 3% and 12%.\nThe opening price must lie within 5% of the 10-day moving average.\nThe 5-day moving average must be above the 10-day moving average.\nThe document offers implementation examples but no performance evidence.\nIt flags omitted fundamentals and crowded candidate lists in bull markets as limitations.

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