Stock Screening with Turnover, Three Down Days, and Rising Averages

Summary

This note describes a Chinese stock screen that combines daily turnover between 3% and 12%, three consecutive declining sessions, and upward movement in several moving averages. Its intended pattern is a short-term pullback among actively traded stocks alongside improving average-price trends. The article supplies example formulas and Python-like code to illustrate how a user might filter stocks by these conditions.

The examples do not implement the same definitions consistently. The formula labels a sequence of declining three-day moving averages as three down days, while the prose refers to three falling candlesticks; the sample Python instead compares closing prices. The moving-average condition also varies between upward-sloping averages and an ordered price/average relationship. No backtest or return evidence is provided. The article cautions that price history may not predict future behavior, that short-term trend judgments are difficult, and that fundamental and financial information is omitted. It suggests combining technical, trading, policy, and fundamental inputs, but does not test an expanded approach.

Key ideas

• The screen combines a specified turnover range, three declining sessions, and rising moving averages.
• The proposed setup pairs recent weakness with signs of improving short-term trend.
• The article's prose, formulas, and sample code use different definitions for the decline and trend conditions.
• No performance evidence is provided, and the note identifies omitted fundamentals and uncertain historical patterns as risks.

Tags

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