A Stock Screen Combining Price Amplitude, RSI, and the 250-Day Average

Summary

The document presents an equity screen using three conditions: daily price amplitude above 1%, RSI below 65, and the prior day’s price above its 250-day moving average. It frames the moving-average condition as a way to favor stocks with stronger long-term price behavior, while the RSI threshold limits selection to stocks below the specified reading. It also describes ranking qualifying stocks by relative price strength and retaining the strongest 20%.

The document warns that a long moving average may not represent future direction, particularly when industry or policy developments cause sharp moves. It suggests adding other technical indicators and fundamental checks, but does not provide evidence that these additions improve results. No backtest period, benchmark, transaction costs, or performance figures are given. The written prior-day condition and the sample formula using the current close do not clearly match, so the intended timing should be checked before implementation.

Key ideas

• The screen combines price amplitude above 1%, RSI below 65, and a price above the 250-day moving average.
• The proposed ranking step retains the strongest 20% by relative price strength.
• The document cautions that the moving average may fail to capture future direction during major industry or policy changes.
• It offers no backtest results or evidence that its suggested additions improve performance.
• The prose describes a prior-day price condition, while the formula uses the current close.

Tags

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