Screening for Seven Down Days, Rising Lows, and Moderate Turnover

Summary

This post proposes screening equities for turnover within a specified range, seven consecutive down days, and a rising-bottom price pattern. It frames the combination as a way to examine stocks after a decline while looking for a possible base or rebound. The author suggests adding indicators such as MACD and RSI, alongside fundamental analysis, to filter candidates and account for investment horizon and timing.

The definition of a rising bottom is vague, and the stated formula and Python example add conditions that are not clearly aligned with the core description, including a long-window low and positive momentum readings. The examples also depend on indicator and data conventions that may differ by platform. The article notes that the screen could miss other rising markets and that a bottom may not have formed as assumed. It supplies no backtest or return evidence, so the pattern should be treated as a candidate-generating rule requiring precise definitions and validation.

Key ideas

• The proposed screen combines a turnover band, seven consecutive down sessions, and rising lows.
• The post suggests adding MACD, RSI, and fundamental information as filters.
• The rising-bottom condition is not precisely defined, and example implementations add extra conditions.
• The screen may miss other market opportunities and cannot establish that a durable bottom has formed.
• No backtest or performance evidence is supplied.

Tags

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