Extreme selling with 80%+ red candles in last 10 bars, RSI < 35, and close below the lower Bollinger Band, with elevated volume and a large real body.
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
No stock is in Capitulation Setup on the 1-Hour chart right now. The screen re-evaluates on every 1-hour close; the app alerts the moment one enters.
Five filters must all be true simultaneously. The 80%+ red candle count (8+ of 10) quantifies a sustained directional selling run. RSI(14) below 35 — tighter than the standard 30 threshold — confirms the Relative Strength Index is in statistically extreme oversold territory. A close below the lower Bollinger Band (20, 2) means price has pushed more than two standard deviations below its recent average. Volume above 1.5x the 20-period average signals panic or forced liquidation rather than passive drift. A body greater than 50% of ATR(14) — the Average True Range — confirms the day's move was decisive and not a narrow, indecisive bar. Each filter is common in isolation; all five firing together is rare.
This is a contrarian setup carrying real risk. The core danger — catching a falling knife — is that extreme technical exhaustion is visually identical to a fundamental collapse: earnings implosion, fraud, or sector destruction. The screen cannot distinguish between the two. Traders typically require a fundamental catalyst check and wait for a price-action reversal confirmation (hammer candle, engulfing bar, or RSI turning back above 35) before entering. Entries on the signal candle without confirmation are the most common failure mode. The daily timeframe targets multi-day to multi-week bounce trades; the 1-Hour version produces faster signals with proportionally higher noise. For simpler variants, see RSI Oversold Bounce + Capitulation (four filters) and RSI Oversold Bounce (momentum only). For the Bollinger-based version, see Bollinger Lower Bounce + Oversold Confirmation.
Educational references. Videos may not match this screen's exact filters.
This screener identifies stocks where five independent extreme-selling conditions have aligned simultaneously: more than 80% of the last 10 candles were red, RSI(14) is below 35, price is closing below the lower Bollinger Band, volume exceeds 1.5x the 20-period average, and the candle body is more than 50% of ATR(14). This is the most demanding multi-factor capitulation screener in the system; all five together marks a concentrated, high-conviction selling extreme rather than a gradual drift. Contrarian traders and swing traders watching for extreme oversold bounce candidates are the primary users.
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