Mean Reversion Screen - Short Price Extreme UP

Mean Reversion Screen - Short Price Extreme UP Image
RUN IN STOCK SCREENER
(10)

This screen shows stocks that have experienced a sharp increase in price 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 SHORT 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

Signal: New 10 day High Today

Current highest Price in 10 days

Stochastics: Stochastics Above 80

Overbought Level

Exchange: US Only

Personal Preference

(close>=(sma20*1.09))

Custom filter, current price is at least 9% above SMA20 price

Price: Above 5

Minimum Price filter

Average Volume: 50 SMA > 500K

Minimal Liquidity

Today>=0%

This ensures us that the most recent day closed positive

RUN
Chart Settings

Daily Charts

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.