A Stock Screen Combining RSI, Seven Down Days, and Fund Flow

Summary

This post describes a stock selection screen that combines RSI below 65, seven consecutive sessions with the close below the open, and declining fund-flow strength. It frames the conditions as a mix of technical signals and investor activity, then offers indicator definitions and example implementation references. The screen is intended to identify shares showing weak recent price action and weakening flow, though the description of these conditions as identifying opportunities is not supported by reported performance results.

The post acknowledges that the rules rely on short-term indicators and omit company fundamentals, making them vulnerable to randomness and near-term volatility. It suggests adding valuation and profitability measures, tuning fund-flow parameters through historical backtesting, and checking signals across multiple time horizons. The provided code excerpt contains implementation inconsistencies, including a condition that appears to reject rather than accept stocks meeting the seven-session rule, so it should not be treated as a validated implementation.

Key ideas

• The proposed screen combines RSI below 65, seven sessions where the close is below the open, and weakening fund flow.
• The post characterizes the signals as short-term technical and activity measures rather than a complete valuation framework.
• It recommends adding fundamental filters and evaluating parameter choices with historical backtests.
• The sample implementation appears to invert the stated seven-session condition, so its logic requires verification.

Tags

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