Mean Reversion Screen - Short Price Extreme DOWN

Mean Reversion Screen - Short Price Extreme DOWN Image
RUN IN STOCK SCREENER
(8)

This screen shows stocks that have experienced a sharp price drop in a short time and are therefore at least 9% away from their 20-day moving averages. This makes these stocks ideal candidates to look for mean reversion LONG setups on the assumption that the price will at least temporarily move back towards the average price. The stocks you have witheld from this screen can be added into your actual trading platform, ready for the next trading day. Be sure to read the articles below and watch the accompanying video that explains exactly what the strategy entails and how to apply it. Good luck!


Related Articles
Article Image

What Is a Mean Reversion Strategy? Understanding the Basics of Mean Reversion in Trading

The mean reversion strategy is based on the assumption that extremely high and low prices which have been established in a relatively short time have deviated too much from the mean price so that there is a high probability that there will be a fall back

Article Image

Mean Reversion Stock Screener

Use the stock screener to find mean reversion trading ideas

Article Image

The Red Dog Reversal a Mean Reversion Strategy for Day and Swing Trading

Extreme price movements, both upward and downward, are associated with high volatility and are usually short-lived. This mean reversion strategy tries to capitalize on this by taking advantage of the moment when the movement loses momentum and returns to

Related Videos

Video Image

How to handle extreme stock price movements? (one intraday and one swing trade strategy)

So, how to handle these extreme volatile stock market times? In this video I show you two ways. One intraday strategy and one swing trading strategy.

Stock Screener Settings

Average Volume: 50 SMA > 500K

Minimal Liquidity

Signal: New 10 day Low Today

Current lowest price in 10 days

(close<=(sma20*0.91))

Custom filter, current price is at least 9% below SMA20 pricelevel

Stochastics: Stochastics Below 20

Oversold Level

Price: Above 5

Minimum Price

Exchange: US Only

Personal Preference

Today<=0%

This ensures us that the most recent day closed negative

RUN
Chart Settings

Daily Chart

Regional Run

Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.