Screening Stocks for High Amplitude, a Ten-Day Average Open, and Seven Down Days

Summary

This post describes a technical stock screen combining three conditions: daily price amplitude above a stated threshold, the opening price near the ten-day moving average, and a pattern described as seven consecutive down days. The accompanying examples define “near” as within five percent of the moving average and rank qualifying stocks by trading volume. The stated aim is to find stocks in a declining phase that might stabilize or reverse, with stop-loss discipline emphasized.

The post warns that relying on recent price patterns can overlook longer-term prospects and that trading halts or limit moves may affect selection. It also notes the absence of a take-profit rule. Its written explanation and sample calculations do not fully establish that the coded condition captures seven consecutive bearish sessions, and no backtest or results are reported. The screen is a hypothesis for evaluation, not evidence that a rebound is likely.

Key ideas

• The screen combines elevated price amplitude, an opening price near the ten-day moving average, and a stated seven-day decline pattern.
• The example defines proximity to the moving average as within five percent.
• The setup seeks possible stabilization after weakness, but does not establish that a reversal will occur.
• The post flags trading interruptions, limit moves, and the missing take-profit rule as limitations.
• No performance test is presented, and the sample condition may not faithfully encode seven consecutive down sessions.

Tags

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