Screening for Rising Lows After Seven Declines

Summary

This Chinese-language post outlines an equity screen for stocks with daily amplitude above a threshold, a rising-bottom pattern, and seven consecutive declining sessions. It frames the decline streak as a possible oversold condition that could precede a rebound. The proposed final rules also exclude specially treated stocks and use a Bollinger middle-band breach as a sell condition; example formulas include additional MACD, Bollinger, and stochastic-related filters.

The post offers formula and Python sketches but does not provide a backtest, trade records, or return and risk statistics. It warns that a long decline does not imply undervaluation or stock quality, and that rapidly changing markets can make the setup dangerous. Several code details and indicator expressions are not fully explained, so the implementation would need careful verification. The suggested additions of other indicators, market capitalization, and volume are ideas for further filtering, not evidence that the strategy has been improved.

Key ideas

• The proposed screen combines elevated daily amplitude, rising lows, and seven consecutive down sessions.
• The rationale treats a long losing streak as a possible oversold setup, but rebound potential is not demonstrated.
• The final rules exclude specially treated shares and specify a Bollinger middle-band exit condition.
• The post includes implementation sketches but reports no backtest or performance statistics.
• A decline streak can reflect deteriorating fundamentals rather than temporary overselling.

Tags

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