Screening Stocks for Large Amplitude and Three Consecutive Declines

Summary

The document describes a stock screen combining daily price amplitude above 1%, the year 2021, and three consecutive declines in closing prices. It frames the amplitude condition as a way to find more volatile stocks and the consecutive declines as a possible sign of continued weakness. Selected stocks are placed in a candidate pool; the post does not specify entry, exit, or position-sizing rules.

It provides example indicator logic and Python-oriented references for applying the conditions, but no performance results or evidence that the screen predicts returns. The example code and prose also leave implementation details unclear, including the precise alignment of the three closing-price comparisons and which price defines amplitude. The author notes that consecutive declines may not be reliable and that the screen omits fundamentals such as valuation and profitability. Suggested additions include fundamental measures and technical indicators, but no combined version is tested.

Key ideas

• The screen combines price amplitude above 1%, a 2021 date filter, and three consecutive lower closes.
• The resulting stocks are treated as candidates rather than complete trade instructions.
• The post offers indicator and Python examples but reports no backtest or trading results.
• The author cautions that three declines alone may be unreliable and recommends considering fundamentals or additional indicators.

Tags

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