A Stock Screen Combining Price Range, Positive P/E, and RSI

Summary

This stock selection method screens for shares with an amplitude above 1, a positive price-to-earnings ratio, and an RSI below 65. It combines a price-range measure with a basic valuation filter and a momentum indicator. The article presents the conditions as a way to find stocks with noticeable price movement that are not yet overbought, and includes reference formulas and an example selection workflow.

The document provides no performance results or backtest evidence. Its explanations also contain questionable assumptions: a positive P/E alone does not establish that a company has a healthy balance sheet, and an RSI below 65 does not guarantee further gains. The author notes that P/E can be distorted and suggests adding measures such as price-to-book ratio and return on equity, along with industry and macroeconomic research. The screen is therefore a basic starting point whose usefulness depends on precise indicator definitions, data quality, and further evaluation.

Key ideas

• The screen selects stocks with amplitude above 1, positive P/E, and RSI below 65.
• It combines a price movement filter with valuation and a momentum indicator.
• The article offers formulas and an example workflow but reports no strategy performance.
• A positive P/E and a below-threshold RSI do not by themselves establish company health or predict gains.
• Additional financial measures and broader market research could supplement the screen.

Tags

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