ChalniTry the demo

Reversals scan

52-Week Low Bounce Screener

This scan finds stocks trading within 10% of their 52-week low whose RSI (14) crossed back above 30 on the latest day.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: within 10% of 52 week low and rsi crossed above 30

  1. Close < 1.1× 52-wk low
  2. RSI(14) crossed above 30

Find US stocks where the closing price is below 1.1 times the 52-week low (before today); and RSI (14) crossed above 30 today.

Formula view
close < 1.1 * lowest(low, 252, before_today)
AND crosses_above(rsi(14), 30)
Example chart: Bounce near the 52-week lowDaily candles of a made-up sample stock with 10% above the 52-week low (before today); Lower panel: RSI (14), dotted lines at 30 and 70. The shaded day is the day the scan fired.
  • 10% above the 52-week low (before today)
  • Lower panel: RSI (14), dotted lines at 30 and 70
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Stocks near their 1-year low are out of favour. Some keep falling; some form a bottom and recover. This scan looks for the second kind by asking for a first sign of better momentum: RSI leaving the oversold zone.

It is a bottom-fishing scan, the opposite of buying 52-week highs. It can find big rebounds, but it is usually right less often, so risk control matters more.

How traders use it

  • Treat the results as a watchlist. Many traders wait for a higher low or a close above the 20-day average.
  • Check why the stock fell. A temporary problem is different from a broken business.
  • Keep positions small and stops tight.

Watch out for

  • Stocks near their lows can keep making new lows. Momentum research suggests losers often keep losing for a while.
  • Value traps can look cheap for a long time.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

Is it good to buy stocks at a 52-week low?

It is risky. Some recover strongly, but many keep falling. Traders who do it wait for signs of a turn and use stops.

What does "within 10% of the 52-week low" mean?

The price is no more than 10% above the lowest price of the past year.

Related scans