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Bearish Stock Scans
This is a collection of stock screens which help to find potential bearish (downward price movement) trading setups. A particular screen/scan may be based on a Japanese Candlestick pattern, moving average cross, price breakdown, stochastic oscillator behavior, etc. Depending on the particular scan / pattern you may find reversal setups or continuation setups.
Name Description
1,2,3 Retracement Bearish Rules (via 'Hit & Run Trading'):
  • ADX must be more than 30 and the -DI more than the +DI.
  • Three consecutive higher highs or any combination of 2 higher highs and an inside day.
  • Tomorrow only, sell short 10 cents below today's low.
  • Initial stop: near today's high.
  • Thereafter, use a trailing stop.
    1. 180 Bearish Setup Rules (via 'Hit & Run Trading'):
    2. Yesterday's close must be in the top 25% of the daily range.
    3. Today's close must be in the bottom 25% of the daily range.
    4. Today, stock must close below both its 10-day and 50-day moving averages.
    5. Sell short: Tomorrow, sell short 10 cents under today's low.
    6. Initial stop: 1 point above entry price.
      1. Bearish Engulfing A chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or engulfs the small white one's real body.
        Boomer Sell Setup Rules (via 'Hit & Run Trading'):
      2. ADX must be more than 30 and the -DI more than the +DI.
      3. Stock must make two consecutive inside days.
      4. On day 4 (the day after the second inside day) sell short 10 cents under the low of the second inside day bar.
      5. Place your initial protective stop 10 cents above the high of the second inside day.
        1. Death Cross 50-day moving average dropped below the 200-day moving average
          Doji - Bearish? Doji candlesticks form when a stock's open and close are virtually equal. They show a stalemate / indecision between bulls and bears. A doji after an uptrend may signal a reversal
          Evening Star Evening star formations can be useful in determining trend changes, particularly when used in conjunction with other indicators. Many traders use price oscillators and trendlines to confirm this candlestick pattern
          Expansion Pivot Sell Setup Rules (via 'Hit & Run Trading'):
        2. Today's trading range must be greater than the daily range of the past nine trading sessions.
        3. Either yesterday or today, the stock is trading at or above the 50-day moving average and explodes lower.
        4. Tomorrow sell short 10 cents below the explosion-day low.
        5. Our initial protective stop is 1 point above the explosion day's close.
          1. Gilligan's Island Sell Setup Rules (via 'Hit & Run Trading'):
          2. A stock must gap open to a new two-month high. The bigger the gap the better.
          3. The stock must close at or in the bottom 50 percent of its daily range and equal to or below the opening.
          4. For the short sell: The next day only, sell short 10 cents under today's low.
          5. Risk 1 point.
          6. Carry the position overnight if it closes weakly.
            1. Lizard Bearish Rules (via 'Hit & Run Trading'):
            2. Today's open and close must be in the bottom 25% of the daily range.
            3. Today's high must be a 10-day trading high.
            4. Tomorrow only, sell short 10 cents under today's low.
            5. Initial stop: 1 point above entry price... Cover the short position at the close if not stopped out.
              1. Most Bearsh Alerts Stocks with the most bearish alerts for the day.
                New 52 Week Closing Low Price made a new 52-week closing low
                New 52 Week Low Price made a new 52-week low
                Non-ADX 1,2,3,4 Bearish Rules (via 'Hit & Run Trading II'):
              2. Stock must be below its 50-day moving average.
              3. Three consecutive higher highs or any combination of 2 higher highs and an inside day.
              4. Tomorrow only, sell short 10 cents below today's low.
              5. Initial stop: near today's high.
              6. Thereafter, use a trailing stop.
                1. Reversal New Lows Setup Rules (via 'Hit & Run Trading II'):
                2. As always, the stock should be priced at more than $30 per share. The higher the price, the better
                3. Today the stock must do all of the following:
                  1. It must trade under yesterday's low.
                  2. It must then trade above yesterday's high (in other words, form an outside day).
                  3. Today's range must be the largest range of the past five days, and today the stock must make a new 60-day low.
                4. For the short sale: tomorrow only, sell short 5 cents below today's low and risk 1 point.
                5. Use a trailing stop and stay in the position until you are stopped out. This can be as short as a few hours to as long as a few days.
                  1. STB 50 Bearish The 50 'most interesting' bearish setups for the day.
                    Shooting Star Candlestick The shooting star is made up of one candlestick (white or black) with a small body, long upper shadow and small or nonexistent lower shadow.
                    Slingshot Bearish Rules (via 'Hit & Run Trading'):
                  2. Day 1: stock makes a 2-month low.
                  3. Day 2's high is at least 10 cents higher than Day 1's high.
                  4. Day 2 or 3: Sell short sell if the stock trades 10 cents below Day 1's low.
                  5. Initial stop: 2 points above entry price.
                    1. Stochastic Sell Signal A sell signal is given when the Stochastic is above the 80 overbought line and the %K line crosses below the %D line