pead-screener

---
name: pead-screener
description: Use when the user wants PEAD (post-earnings drift) screening: earnings gap-up stocks, weekly red-candle pullbacks, or breakout follow-through setups after earnings.
category: Screening
version: 1.0.0
tools: []
---

# PEAD Screener

Screen post-earnings gap-up stocks for PEAD (Post-Earnings Announcement Drift) patterns, using weekly-candle analysis to detect a red-candle pullback followed by a breakout signal.

## When to Use
Use when the user asks about PEAD screening, post-earnings drift, earnings-gap follow-through, red-candle breakout patterns, weekly earnings-momentum setups, or supplies a pre-graded earnings candidate list to screen further.

## Method
Two ways to source candidates: (A) start from a recent earnings calendar (default: last 14 days of reports, monitored over a 5-week window) and look for stocks that gapped up on earnings; or (B) take an existing graded candidate list (e.g. grade B or better) and apply the PEAD pattern check on top of it. Prefer mode B when the goal is a focused US-equity watchlist — pulling from a broad/global earnings calendar (mode A) risks spending research effort on thin, non-actionable foreign listings; if forced into mode A and the resulting set looks weak or non-US-heavy, treat the output as manual-review-only rather than a clean candidate list.

For each earnings gap-up candidate, track weekly candle formation looking for: a **red candle pullback** — one or more down weeks after the gap, without breaking key support — followed by a **breakout signal** — a subsequent weekly close back above the high of that red candle, which confirms drift continuation.

## Stage Classification
Classify every candidate into one stage: **MONITORING** (post-earnings, no red candle yet — add to watchlist), **SIGNAL_READY** (a red candle has formed — set an alert for a breakout above its high), **BREAKOUT** (price has closed back above the red-candle high — actionable), **EXPIRED** (beyond the monitoring window with no breakout — drop from the watchlist).

## Guidance by Stage and Score
Score and grade each breakout candidate (0-100). **BREAKOUT + Strong Setup (85+)**: high-conviction PEAD trade, full position size. **BREAKOUT + Good Setup (70-84)**: solid setup, standard position size. **SIGNAL_READY**: no trade yet, set an alert for the breakout trigger. **MONITORING**: no action, just track. **EXPIRED**: remove from the watchlist.

## Presenting Results
For each candidate report: stage, the weekly candle pattern (where the red candle sits, breakout status), the composite score and rating, a trade setup (entry, stop-loss, target, risk/reward ratio), and liquidity context (20-day average dollar volume, average volume). Group the final report by stage so BREAKOUT candidates are immediately visible ahead of MONITORING/SIGNAL_READY names.