Screening for Seven Losing Sessions Near the Ten-Day Moving Average

Summary

This proposed equity screen selects stocks with turnover between 3% and 12% that have fallen for seven consecutive sessions and whose opening price lies between the current and previous ten-day moving averages. The author interprets the moving-average condition as proximity to a possible support area, seeking declining shares that may be near a technical level of interest.

The post gives sample formula and Python-style logic, but reports no backtest, candidate examples, or performance results. It warns that a moving average may fail as support and that price and turnover filters omit company fundamentals and broader market risk. The author suggests adding financial measures such as price-to-earnings and price-to-book ratios, alongside indicators like RSI and MACD. The rule is therefore a technical screening idea, not evidence of a dependable rebound strategy.

Key ideas

• The screen uses turnover between 3% and 12% and seven consecutive declining sessions.
• It requires the opening price to fall between the current and prior ten-day moving averages.
• The moving-average condition is presented as a possible support-area filter.
• The post warns that support can fail and that price and turnover alone omit fundamental risks.
• No backtest or performance results are reported.

Tags

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