Screening Markets for Assets Below Recent Price Peaks
Summary
This screener searches symbols or selected asset categories for instruments whose current prices have fallen below recent closing-price peaks. Users can set a lookback period, with a 90-day default, and a drawdown threshold. The intended use is to surface candidates for further review by value investors, swing traders, portfolio managers, and technical analysts.
The document describes a screening utility rather than a tested trading strategy. It gives no backtest, performance results, or evidence that assets with large drawdowns are undervalued or likely to reverse. A drawdown may reflect deteriorating fundamentals or a continuing decline, so the screen alone cannot establish a buying opportunity. Its usefulness depends on the selected period and threshold, and further analysis and risk controls are needed before acting on results.
Key ideas
- The screener compares current prices with recent peaks using closing prices.
- Users can adjust the lookback period and drawdown threshold.
- Category filters let users limit the scan to stocks, forex, indices, or crypto.
- A large drawdown identifies a candidate for research but does not establish undervaluation or a reversal.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.