Stock Screen for Three Down Days, Turnover, and a Sharp Intraday Decline

Summary

This proposed equity screen selects shares with turnover between 3% and 12%, three consecutive down sessions, and a stated largest daily decline between 4% and 5% in magnitude. The post presents the combination as a way to filter by trading activity and recent price behavior. It includes a formula example and a Python sketch, but supplies no backtest results, portfolio rules, or evidence that the pattern predicts a rebound or continuation.

The author notes that the screen omits broader market and company factors, including industry conditions, policy influences, valuation, earnings, and sentiment, and suggests considering those alongside the technical conditions. The implementation details also warrant care: the prose describes the decline as a negative range, while a code sketch calculates a difference between price fields without clearly normalizing it as a percentage. The stated conditions alone do not specify entry timing, exits, or position sizing, so they should be treated as a screening concept rather than a complete strategy.

Key ideas

• The screen requires turnover from 3% to 12% and three consecutive declining sessions.
• It also filters for a stated daily maximum decline in the 4% to 5% range.
• The post gives code sketches but reports no backtest results or evidence of profitability.
• The rule omits company, industry, and broader market context, and its example calculation needs careful validation.

Tags

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