Stock Screening for Three Falling Sessions Near the 10-Day Average

Summary

This short-term stock screen combines turnover, opening price, and recent price direction. It selects shares with turnover from 3% to 12%, an opening price within five percent of the 10-day moving average, and three consecutive declining closes. The accompanying formula and Python example operationalize these conditions, though the close comparisons in the examples check only prior closes and do not clearly require the current session to extend the sequence.

The post frames the setup as a way to identify relatively weak stocks, suggesting recent declines could signal further downside. It characterizes the method as suitable for short-term technical screening, but provides no backtest, trade rules, or evidence that the pattern predicts returns. It warns that technical-only filters may omit fundamental and market factors and that the approach is not designed for long-term investing. Suggested refinements include adding financial and macroeconomic information or further indicators, without specifying how to evaluate those additions.

Key ideas

• The screen combines turnover between 3% and 12% with an opening price near the 10-day average.
• It uses a sequence of declining closes as a signal of recent weakness.
• The formula examples may not include the current session in the three-session decline condition.
• The article provides no performance evidence and cautions against relying on technical filters alone.

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