Fallen Angel Screener is a method to find highly oversold stocks on daily or weekly charts. The stocks filtered through this scanner offers a great buying opportunity.
The oversold stocks are scanned by comparing the current close price with the highest and lowest price over the past 200 days. Also, volume is factored as an extra filter to avoid false signals. See the AFL formula for complete calculation details.
This scanner is originally formulated by Dr. Alexander Elder and introduced in one of his books.
You can use this scanner on the Daily or Weekly timeframe.
Also Read: Trend Intensity Index (TII) AFL Code
Below is the screenshot of the fallen angel screener exploration result from Amibroker. The result lists down all the stocks that meet the criteria of this screener:
Fallen Angel Screener AFL Download
Download the AFL code of fallen angel screener from the below link:
As you can see in the AFL code, the stocks qualify the fallen angel criteria if all the below parameters are true:
Parameter 1: The ratio of CloseDev and HighLowRange200Periods (in % terms) is less than 10
CloseDev = Current Close – Lowest low value of past 200 periods
HighLowRange200Periods = The difference between the highest high value and lowest low value for past 200 periods
Parameter 2: The simple moving average of volume multiplied by close for the past 52 periods is greater than 3 million
Parameter 3: The current product of volume and close is greater than the simple moving average of volume multiplied by close for the past 52 periods
Parameter 4: Current high is greater than the highest high value of the past 10 periods
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