Screening Stocks for Seven Consecutive Declines and a Recent Price Surge

Summary

This stock screen combines a turnover filter, a streak of declining closes, and evidence of a sharp rise within a recent lookback period. It selects shares with turnover between 3% and 12%, closes no higher than the prior close for seven consecutive sessions, and at least one day in the past 25 trading sessions when the high was more than 10% above the previous high. The proposed rationale is to find stocks that have sold off recently but showed a prior burst of strength.

The post offers formula and Python examples but no backtest, portfolio results, or evidence that the pattern predicts a rebound. It warns that the strict conditions may leave few candidates and limit diversification, and that focusing on short-term price action may weaken longer-term risk control. It suggests adding technical, fundamental, industry, or sentiment measures, while leaving those choices unspecified. The screen's rebound interpretation is a hypothesis, not a demonstrated result.

Key ideas

• The screen requires turnover between 3% and 12% and seven consecutive non-rising closes.
• It also requires a day with a greater than 10% increase in the high within the prior 25 sessions.
• The author interprets the earlier surge as a possible sign of stabilization or rebound potential.
• Strict filters may produce few candidates and constrain diversification.
• The post supplies no performance test to validate the proposed signal.

Tags

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