Screening Main Board Stocks After Seven Consecutive Declines

Summary

The proposed screen looks for main-board stocks with RSI below 65, a daily gain greater than 1%, and a recent sequence of seven declining sessions. It aims to find stocks that have experienced persistent weakness but are rebounding on the screening day. The document includes sample selection logic that also excludes special-treatment and suspended shares and ranks qualifying candidates by the day’s return.

The article offers no backtest results or evidence that the rebound setup is profitable. Its prose and code are not fully consistent: the narrative specifies seven consecutive down days, while parts of the example logic compare the latest close with a close six sessions earlier rather than checking each intervening session. It also describes RSI as indicating favorable technical conditions despite the decline filter. The author notes that the screen omits company fundamentals and may be risky in volatile markets, and suggests adding valuation, dividend, and growth measures alongside diversification and risk controls.

Key ideas

• The screen combines RSI below 65, a daily gain above 1%, main-board status, and a seven-day decline condition.
• It seeks a same-day rebound after sustained weakness.
• The sample logic also excludes special-treatment and suspended shares and ranks candidates by daily return.
• The examples do not consistently verify seven consecutive declining sessions, so the condition needs careful implementation.
• The article reports no performance evidence and recommends fundamental filters, diversification, and risk controls.

Tags

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