Screening for High-Range Stocks After Seven Consecutive Down Days

Summary

This proposed equity screen looks for stocks with amplitude above one percent, a control measure above 21, and seven consecutive down days. Its refined version also requires circulating market capitalization of at least 3 billion. Example implementations are included, but the indicator names and thresholds are not fully consistent across the descriptions and code, so the exact operational definitions need checking.

The post frames the setup as a contrarian search for possible short-term rebounds after a sustained decline. It warns that adverse company or industry conditions may drive further losses and that the strict filters can produce a small, less generalizable set of candidates. Suggested refinements include adding strength indicators or fundamental analysis, relaxing the down-day requirement if few names qualify, and assessing the approach with backtests and live trading. The document reports no performance results, so it does not establish that the screen earns excess returns.

Key ideas

• The proposed screen combines amplitude above one percent, a control measure above 21, and seven consecutive down days.
• The refined rule adds a minimum circulating market capitalization of 3 billion.
• The post treats the setup as a possible rebound screen and warns that continued declines are possible.
• The post provides no performance results and notes that a strict filter may yield few candidates.

Tags

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