A Seven-Day Decline Stock Screen with Turnover and Recent High Conditions

Summary

This stock-selection approach screens for shares with turnover between 3% and 12% that have declined for seven consecutive days. It also uses a recent two-day high as the stated buy-price reference. The document gives example formula and Python implementations, alongside an explanation of the intended idea: seek possible rebounds after sustained short-term weakness while filtering for a turnover range.

The author cautions that a seven-day decline does not establish that a bottom or reversal is near, and that short-term technical conditions can overlook company fundamentals. Suggested refinements include reviewing fundamentals and adding valuation measures. No backtest, performance figures, or evidence that the screen predicts profitable rebounds is provided. The sample formulas also contain platform-specific indicator names and conditions that the document says may need adjustment for a user's data source, so the written screen should be checked against the implementation before use.

Key ideas

• The screen combines a 3% to 12% turnover range with seven consecutive declining days.
• The buy-price reference is the highest stock price over the prior two days.
• The strategy is framed as a search for potential rebounds after sustained weakness.
• The author warns that falling prices may continue and recommends considering company fundamentals.
• The example code is platform-specific and may require changes for the available data source.

Tags

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