Screening Stocks by Volume Strength, Recent Returns, and Intraday Decline

Summary

This post describes a stock screen combining three conditions: volume ratio ranks among the top 100 stocks, the current day's decline falls between 4% and 5%, and the 10-day gain is positive but below 35%. The author interprets this mix of trading activity, a moderate daily drop, and recent gains as a possible way to find rebound candidates. The post also suggests adding valuation measures and technical indicators such as moving averages or Bollinger Bands.

It offers a screening concept rather than evidence of a tested strategy: no backtest, benchmark, sample period, or performance results are provided. The proposed rebound potential is therefore speculative. The author notes that the screen omits company fundamentals and may select stocks already attracting heavy market attention, which can mean larger price swings. The included code excerpt is incomplete, and the final suggested additions to the screen are recommendations rather than a validated method. Readers would need to define precise data conventions and test the criteria before relying on them.

Key ideas

• The screen ranks stocks by volume ratio and keeps the top 100.
• It selects stocks with a daily decline between 4% and 5% and a positive 10-day gain below 35%.
• The author presents the combination as a possible source of rebound candidates, without supplying performance evidence.
• The post flags missing fundamental analysis and potentially elevated volatility as risks.
• It proposes adding valuation and technical measures, but does not validate those additions.

Tags

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