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
3 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 Monthly 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 Monthly 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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