Screening Stocks for a Three-Day Decline and Limited Opening Gain

Summary

The document describes a short-term stock screen combining three technical conditions: price range greater than one, a gain below six percent at the 9:25 observation, and three consecutive bearish daily candles. It frames consecutive down days as a possible setup for a rebound and supplies both a charting-platform formula and a Python example that retrieves market data and filters listed shares.

The post cautions that the screen focuses on price action and omits company fundamentals, which may make its selections unstable. It suggests adding valuation or profitability measures and using the consecutive-decline condition alongside other indicators. The examples do not provide a backtest, measured returns, transaction costs, or a defined exit and risk plan. The accompanying code's data windows and condition checks may not implement every stated criterion precisely, so the screen should be understood as an idea to validate rather than demonstrated evidence of an effective strategy.

Key ideas

• The screen combines a price-range threshold, a capped 9:25 gain, and three consecutive bearish candles.
• The rationale is that a run of declining sessions may precede a short-term rebound.
• The post recommends combining price signals with company fundamentals for broader assessment.
• No backtest, return evidence, transaction-cost analysis, or exit rules are provided.
• The sample implementation may not match the stated conditions exactly and requires validation.

Tags

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