One of the techniques in George Lea's trading toolset is to locate bearish stocks using a reverse of the bullish rules by Market Wizard Mark Minervini.
This template implements the rules:
1. The current stock price is BELOW both the 150-day (30-week) and the 200-day (40-week) moving average price lines.
2. The 150-day moving average is BELOW the 200-day moving average.
3. The 200-day moving average line is trending DOWN for at least 1 month (preferably 4â€“5 months minimum in most cases).
4. The 50-day (10-week) moving average is BELOW both the 150-day and 200-day moving averages.
5. The current stock price is trading BELOW the 50-day moving average.
6. The current stock price is at least 30% BELOW its 52-week high.
7. The current stock price is within at least 25 percent of its 52-week LOW (the closer to a new LOW the better).
8. The Relative Strength rating is no MORE than 30 and preferably BELOW 20 or 10