Screening for Sharp Daily Losses Above a Rising 30-Day Average

Summary

This proposed stock screen combines a daily trading range greater than 1%, an intraday low between 4% and 5% below the previous close, and a rising 30-day average. It is presented as a way to identify stocks experiencing a sharp pullback while retaining an upward trend filter. The discussion characterizes the method as purely technical and suggests that trend confirmation and fundamental filters could be added.

The article identifies market changes and rigid indicator rules as risks, including the possibility of missing opportunities. It offers no backtest, sample definition, or performance evidence. The example implementation also diverges from the stated rules: it checks whether the low is below a 4% loss threshold but does not enforce the 5% bound, and it compares the current close with the 30-day average rather than testing whether that average is rising. Its additional size and valuation filters appear only in the code, not the final written criteria, so the implementation should not be assumed to reproduce the proposed screen.

Key ideas

• The proposed screen pairs a large intraday range and a bounded daily decline with an upward 30-day trend condition.
• The article frames the setup as a technical pullback screen.
• It suggests confirming the trend with other indicators and adding fundamental filters.
• The sample code does not fully implement the written loss range or rising-average condition, and no performance evidence is provided.

Tags

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