Screening for Institutional Buying After Seven Down Days

Summary

The proposed equity screen combines an institutional accumulation measure above 5%, seven consecutive declining sessions, and a 9:25 a.m. gain below 6%. The accompanying explanation treats institutional buying as a sign of investor interest, while the losing streak and limited opening gain describe weak recent price action and possible pressure. The post also proposes valuation filters, specifying a price-to-earnings ratio below 20 and a price-to-book ratio above 1.

The article acknowledges that seven down days can signal weakness and that buying activity may be followed by a pullback. It suggests adding fundamental measures, longer observation periods, and other technical indicators. No backtest, return data, or operational definition of the institutional accumulation field is given. The sample calculations also leave unclear how the opening move is normalized and how a streak is confirmed, so the conditions need precise definitions before implementation or evaluation.

Key ideas

• The screen combines institutional accumulation above 5%, seven down sessions, and a 9:25 a.m. gain below 6%.
• The proposed final version adds a PE ratio below 20 and a PB ratio above 1.
• The author identifies weak recent price action and possible pullback risk as concerns.
• The post recommends combining technical conditions with fundamentals and broader time horizons.
• The example leaves key data definitions unclear and reports no backtest results.

Tags

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