Strong downside momentum — five lower closes.
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
14 stocks matching now.
The filter checks that the current close is below the prior close, and the prior close is below the one before it, for five consecutive bars — all five comparisons must be true simultaneously. on the Daily chart, a single higher close in any of the five months disqualifies the stock.
Five consecutive lower monthly closes is a meaningful signal in both directions: it confirms a structural downtrend, but it also marks a point of potential exhaustion. The distribution of these 37 stocks matters — if most are in the same sector, it reflects a sector-specific breakdown rather than broad deterioration. Short entries timed at this screen signal carry significant mean-reversion risk; waiting for a single counter-trend bounce (a higher monthly close) before re-entering short often produces better timing. Key failure mode: many of the stocks with five lower monthly closes may have already discounted the negative news that drove the decline — the next catalyst could be positive, causing a sharp reversal from an oversold baseline. Compare to Five Higher Closes for the bullish equivalent, and Three Lower Closes for a shorter-duration version of the same concept.
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This screener finds stocks that have closed lower than the previous close for five consecutive bars — uninterrupted downside momentum persistence. on the Daily chart, five consecutive lower closes represents five months of continuous declining closes, a rare and significant bearish condition. Short sellers and risk managers use this to identify stocks in confirmed multi-month downtrends. Who uses this: swing traders looking for short candidates with demonstrated downside persistence, and portfolio managers screening for deteriorating holdings. Failure mode: five consecutive lower monthly closes often produces deeply oversold conditions — shorting at this point can coincide with a mean-reversion bounce even if the long-term trend is still down. Related screens: Three Lower Closes and Five Higher Closes.
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