A Stock Screen Combining Low RSI, Seven Down Days, and Moving-Average Clustering

Summary

This proposed short-term stock screen looks for an RSI below 65, seven consecutive bearish sessions, and at least five moving averages clustered together. The article interprets the decline and RSI filter as signs of recent weakness, while moving-average convergence is presented as a way to identify prices near a possible turning area. It describes the setup as a potential short-term buying opportunity and includes sample indicator and data-query logic.

No backtest, trade outcomes, or supporting performance data are supplied. The article notes that the rules rely on price and technical indicators, omit company fundamentals, and may miss rising stocks in a broader up market. It also says the moving-average condition could be too restrictive. The sample code appears to check prices against an average rather than directly measuring whether five distinct averages overlap, so it may not implement the stated condition faithfully. The screen therefore needs precise definitions, reliable data, and testing across market regimes before it can support a trading decision.

Key ideas

• The proposed screen requires RSI below 65, seven bearish sessions in a row, and at least five clustered moving averages.
• The author frames the combination as a possible short-term buying setup after sustained weakness.
• The note provides no performance evidence and does not incorporate fundamental information.
• Strict moving-average clustering may exclude candidates, while the sample code may not measure clustering as described.
• The rules need clearer definitions and testing across different market conditions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.