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Screens / Mean Reversion

Three Down Days Above 200 SMA

Three consecutive lower closes in a long-term uptrend.

ThinkorSwim

Exact criteria (as backtested)

UniverseS&P 500 + Nasdaq 100 (current members)
Price> $5
20d avg $ volume> $5M
Closes3 consecutive lower closes
Close> 200 SMA

Backtest · 2021-10-13 → 2026-10-12

How we test
Hit rate (5d > 0)
53.5%
Avg 5-day move
+0.42%
Max drawdown
-24.0%
Signals
33,176
Median 5d: +0.31%
SPY 5d same days: +0.31%
Curve CAGR: +16.0%
Days in market: 100%
2021202220232024202520262.13×0.85×

Equal-weight trade curve (weekly, 1.0× = start). Each signal held 5 sessions; daily return = mean of open positions. No fees, slippage or taxes. Survivorship-biased universe. Not indicative of future results.

Copyable platform settings

ThinkorSwimclose<close[1] and close[1]<close[2] and close[2]<close[3] and close>Average(close,200)

Finviz strings are URL filter codes (append to finviz.com/screener.ashx?v=111&f=). ThinkorSwim strings are thinkScript scan conditions. Platform equivalents may differ slightly from the backtested definition; verify before use.

Most recent signals in backtest

WST 2026-10-02AMGN 2026-10-05GILD 2026-10-05INCY 2026-10-05INTC 2026-10-05JNJ 2026-10-05PFE 2026-10-05VRTX 2026-10-05

How the Three Down Days Above 200 SMA screen works

The Three Down Days Above 200 SMA screen is a mean reversion setup: three consecutive lower closes in a long-term uptrend. A stock qualifies on a given day when every condition is true at the close: closes 3 consecutive lower closes; close > 200 SMA. To keep results tradable, only S&P 500 and Nasdaq-100 members above $5 with more than $5M of average daily dollar volume are included.

Across 518 tickers from 2021-10-13 to 2026-10-12, the screen fired 33,176 times on 514 different stocks. 53.5% of signals were higher five sessions later, ranking #9 of 25 screens on SetupHits by hit rate. The average 5-day move was +0.42% (median +0.31%), ahead of SPY's +0.31% over the same days, and the equal-weight trade curve's worst drawdown was -24.0%.

Setup is copy-paste: ThinkorSwim versions are listed above. In TradingView use the string in the Stock Screener filter or a Pine condition; in Finviz append the filter codes to the screener URL; in ThinkorSwim paste the thinkScript into a Stock Hacker custom study filter. Platforms compute indicators slightly differently, so expect small differences in the hit list.

Treat these numbers as context, not a forecast. The backtest uses daily bars, ignores commissions and slippage, overlaps signals on the same stock, and tests today's index members back in time, which adds survivorship bias. Dip-buying screens are especially flattered by that bias.

Full test rules: methodology. Compare every setup in our ranked list of stock screeners.

FAQ

What is the Three Down Days Above 200 SMA stock screener?

Three consecutive lower closes in a long-term uptrend. It is a mean reversion screen evaluated on daily closes for S&P 500 and Nasdaq-100 stocks.

What is the Three Down Days Above 200 SMA backtest hit rate?

53.5% of 33,176 signals between 2021-10-13 and 2026-10-12 closed higher 5 trading days later, with an average 5-day move of +0.42% and a max drawdown of -24.0%.

How do I set up the Three Down Days Above 200 SMA screen in TradingView, Finviz or ThinkorSwim?

Copy the platform string on this page: ThinkorSwim settings are provided. Results can differ slightly because each platform calculates indicators its own way.

Is the Three Down Days Above 200 SMA screen good for day trading?

It is an end-of-day screen measured over a 5-day hold, so it suits swing trading or building a next-day watchlist more than intraday entries. Past, simulated results do not predict future returns.

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