Stock Screening with Turnover, Three Declining Sessions, and Rising Lows

Summary

This document describes a Chinese stock screening rule combining turnover between 3% and 12%, three consecutive down sessions, and successively higher daily lows. It provides indicator and Python examples intended to identify shares that have pulled back while their lows rise. The examples use different implementations: one checks falling moving averages, while the other checks consecutive closing-price declines, so they do not define the same three-session condition.

The article characterizes the method as technical screening and suggests adding valuation, dividend, or other technical measures. It offers no backtest, performance figures, or evidence that the screen improves returns. Its own caveats are that technical signals can be unstable, sector behavior may differ, and excluding fundamentals can miss attractive companies. The rule is therefore a screening concept rather than a validated investment strategy.

Key ideas

• The screen combines turnover between 3% and 12% with three consecutive declining sessions and rising lows.
• The indicator example uses a falling three-day moving-average sequence, while the Python example checks consecutive lower closes.
• The article suggests adding fundamental or other technical measures to refine candidate selection.
• No performance evidence is supplied, and the article notes that technical signals may be unstable.

Tags

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