Source: Data Powered by Licensed Source, Data as of Nov. 15, 2024. *The above performance data is based on average price change for selected stocks listed on NASDAQ, as per the screening criterias defined for Bearish Screener. The performance data is updated on a weekly basis.

Description of Bearish Screener

Bearish companies' data helps identify companies with bearish price signals as per technical indicators. This companies’ data screen is developed based on key technical indicators and price parameters such as Relative Strength Index (RSI), Simple Moving Averages (SMAs), Moving Average Convergence/ Divergence (MACD), Directional Movement Index (DMI) and Volume.

A company's share price is said to be bearish when it declines continuously and struggles to move up. Typically, in a bearish market, some investors may prefer to stay on the side-lines, while some investors may look for opportunities to buy quality shares at low prices for long-term holding.

There are various technical indicators to identify bearish trend in a company’s share price. For instance, when the current price of a share trades below its 50 DMA or 200 DMA and 200 DMA is less than 50 DMA, the stock is in a bearish trend.

Definitions:

Relative Strength Index (RSI): RSI is a leading momentum indicator developed by J. Welles Wilder. It moves in a range of 0 to 100 and due to the range-bound feature, it is also known as an oscillator. As per Wilder's definition, a reading above 70 levels is considered overbought, whereas a reading below 30 is oversold. The default period of RSI is 14 days and can be used in different ways for analysis perspectives such as divergences, overbought, oversold, and centerline crossovers.

Moving Average Convergence/ Divergence (MACD): MACD is a trend-following (lagging) indicator Developed by Gerald Appel. It is an oscillator that fluctuates above and below the centerline (zero value) and includes a MACD line and a signal line for representation. MACD is used in three ways to confirm the trade signal, i.e., centerline crossover, signal line crossover, and divergence.

Simple Moving Average: A Simple Moving Average (SMA) is a widely used trend-following (lagging) indicator based on the past price. It also serves as the basis for other technical indicators and thus keeps an important place in technical analysis. It is the average closing price over the specified timeframe. The 10, 20, 50, 100, and 200 periods are the most common time frames used when creating moving averages. It can identify a stock trend and support/ resistance levels.

Volume: Volume represents the number of shares or contracts that have been traded in a particular period. In simple words, the volume is the number of shares that changed hands during a given period. Stocks with high volumes are considered more liquid, and liquidity in stocks helps in easier and faster execution of the order. The volume is displayed by histogram and is usually available below the price action on a standard chart.

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