A Seven-Day Decline and Prior Limit-Ups Stock Screen

Summary

This technical screen looks for stocks with amplitude above 1, at least two limit-up events within the previous 500 days, and declines across seven consecutive sessions. The proposed interpretation is that the screen identifies weak recent price action in stocks that have shown substantial prior price moves, potentially creating rebound candidates. The post also proposes ranking candidates using amplitude, limit-up frequency, and the length of the decline. It offers indicator formulas and sample code, but reports no backtest, trading rules for entering or exiting positions, or evidence that a rebound follows.

The post acknowledges that the method emphasizes technical conditions and may overlook company fundamentals. It describes the consecutive-decline condition as difficult to use reliably and advises risk control. It suggests adding other technical indicators, such as moving averages or KDJ, while reducing dependence on any single criterion. The written rules and sample code do not fully align in how they evaluate the consecutive decline and amplitude conditions, so implementation should be checked. The strategy is best understood as a speculative stock-selection hypothesis rather than a demonstrated mean-reversion effect.

Key ideas

• The screen requires amplitude above 1, at least two limit-up events in 500 days, and seven declining sessions.
• It treats extended weakness after prior sharp moves as a possible rebound setup.
• The post proposes ranking candidates using amplitude, limit-up counts, and decline duration.
• No backtest or evidence of subsequent rebounds is reported.
• The sample code and written conditions differ and should be reconciled before implementation.

Tags

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