Stock Screening with Volume Ratio, a Rising 30-Day Average, and a Pullback

Summary

The document presents a Chinese-equity screening rule that combines relative trading activity, a one-day decline, and a rising trend filter. It selects stocks ranked among the top 100 by volume ratio, with the day’s decline between 4% and 5%, and requires the 30-day moving average to be rising while price remains above it. The intended setup is a short-term pullback within an upward trend, accompanied by comparatively strong trading activity. Trend lines and support or resistance levels are suggested as additional discretionary checks.

The post characterizes the screen as a way to combine capital-flow strength, a moderate setback, and trend direction, but gives no backtest results, return figures, or validation of predictive value. It acknowledges that multiple filters can still select unsuitable stocks and that historical screening cannot ensure future performance. Its code reference is incomplete and some indicator references do not clearly implement the stated measures, so the selection logic is more reliable as a written rule than as an executable specification. Further testing would be needed before use.

Key ideas

• The screen ranks stocks by volume ratio and retains the top 100.
• It selects stocks with a daily decline between 4% and 5% while price remains above a rising 30-day moving average.
• The setup aims to find a pullback within an upward trend alongside strong relative trading activity.
• Trend lines and support or resistance levels are proposed as supplementary checks.
• The post offers no performance evidence, and its code reference is incomplete.

Tags

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