A Stock Screen for Seven Declining Sessions and a Lower Daily Low

Summary

This note describes a short-term reversal-oriented stock screen. It selects shares with turnover between 3% and 12%, closing prices no higher than those of each of the previous seven sessions, and a current low below the prior session’s low. The proposed rationale is to find stocks under sustained recent pressure whose continued decline might precede a rebound. Formula and Python examples are included to illustrate the conditions, though data-field names and rolling-window behavior should be checked against the implementation platform.

The document gives no test results or evidence that the pattern predicts reversals. It acknowledges that the rules rely on price behavior, omit company finances and industry risks, and can be sensitive to news and trading sentiment. The screen’s short-term criteria may also be too restrictive under changing market conditions. The author recommends combining technical selection with fundamental and market context. As presented, this is a hypothesis for further evaluation, not a validated buy signal.

Key ideas

• The screen restricts turnover to between 3% and 12%.
• It seeks seven sessions of non-rising closes and a current low below the previous low.
• The stated rationale is to identify possible rebound candidates after a sustained decline.
• The note supplies no backtest evidence that the conditions predict reversals.
• It recommends adding fundamental and broader market information to the screen.

Tags

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