A Stock Screen Combining RSI, Bid-Ask Volume, and Rising Lows

Summary

This proposed equity screen combines three conditions: a 14-period RSI below 65, displayed bid-side volume greater than ask-side volume, and a pattern intended to identify rising lows. The idea is to find stocks with a constrained momentum reading, stronger visible buying interest, and a potentially improving price floor. The document gives indicator formulas and example implementation references, but supplies no measured returns, benchmark, or backtest evidence.

The author warns that price and order-book signals do not account for company fundamentals or business quality, and that identifying a rising bottom is subjective and vulnerable to changing market conditions. Suggested safeguards include checking financial and business information and using other technical measures to corroborate the pattern. The write-up therefore presents a screening concept rather than a validated strategy. Its bottom-pattern formula is also not fully self-explanatory, so traders would need to define and verify the intended higher-low condition before using it.

Key ideas

• The screen requires RSI below 65, bid-side volume above ask-side volume, and a rising-low pattern.
• The document frames these conditions as a blend of technical and order-book information.
• It provides example indicator logic but reports no tested performance or comparative evidence.
• Fundamental risks and subjective interpretation of rising lows are important limitations.
• Financial analysis and corroborating technical measures are suggested as additional filters.

Tags

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