Close crossing above the lower Bollinger Band after a heavy red-candle stretch (last 10 bars), with repeated high-volume candles and large real bodies in that window.
Stocks matching this pattern right now appear in the list. Select one to see its chart and backtested strategy performance.
Part of Oversold Stocks Today
5 stocks matching now.
Four filter groups work together. The Bollinger Lower Band cross requires price to close below the band on the prior bar and above it on the current bar — the exact recovery bar. The band itself is the 20-day Simple Moving Average minus two standard deviations. The 65%+ red candle count (at least 7 of 10 days closed red) confirms a persistent selling run preceded the bounce. The volume filter — 1.3x the 20-day average on at least 2 of those 10 days — confirms real selling participation rather than passive drift. The ATR body filter — body exceeding 40% of ATR(14) on at least 2 days — confirms decisive selling candles. The "at least 2 of 10" thresholds on volume and body make the filter less strict than requiring every down day to show high volume, which rarely occurs in practice.
When it fires, traders treat the Bollinger lower band cross as the entry trigger and the prior selling confirmation as the context making the bounce credible. The primary failure mode is a technical bounce within a structural downtrend: price recovers above the lower band but stays below the 20-day SMA (the middle Bollinger Band), which acts as resistance, then rolls back down. A second failure is continued fundamental deterioration after the bounce — the stock makes a lower low and the recovery was simply a relief rally. Most traders wait for a close back above the 20-day SMA as confirmation of genuine follow-through. For the simpler version without prior-candle qualifiers, see Bollinger Lower Band Cross Up. For the momentum component, see RSI Oversold Bounce.
Educational references. Videos may not match this screen's exact filters.
This screener finds stocks where price has crossed back above the lower Bollinger Band on the Daily chart after a sustained selling period — requiring that at least 65% of the last 10 candles were red, at least 2 had volume exceeding 1.3x the 20-period average, and at least 2 had candle bodies greater than 40% of ATR(14). The lower Bollinger Band cross-up is the entry trigger; the prior selling conditions are the qualifiers that distinguish a genuine exhaustion bounce from a random statistical fluctuation. Swing traders use it to time entries in stocks that have undergone real selling pressure before recovering the lower band.
How did this screen perform on a specific stock? Pick any stock to see backtested exit strategies.