A Stock Screen Using RSI, Industry, and a Sharp Daily Decline

Summary

This post describes an equity screen using three main conditions: RSI below a stated threshold, membership in the beverage and alcohol import-export industry, and a daily low within a narrow band of declines. It frames the industry filter as a fundamental grouping and the RSI and price move as technical and sentiment inputs. The author suggests supplementing the screen with valuation measures, profitability, revenue stability, and other indicators, then checking the selected names rather than relying on the filter alone.

The post includes example formulas and a sample Python implementation that adds market capitalization, non-special-treatment status, price-to-earnings filtering, and ranking by net money flow. It presents no backtest, returns, or evidence that the conditions predict performance. The formula examples appear inconsistent about whether they use current or prior data and how the decline condition is measured, so the screen's timing and definitions need clarification before evaluation. The discussion also cautions that market sentiment can shift and that correlations among filters matter.

Key ideas

• The screen combines an RSI threshold, a specific industry classification, and a bounded daily decline.
• The sample implementation adds size, listing-status, valuation, and money-flow filters.
• The author recommends broader fundamental review and attention to relationships among screening variables.
• No predictive or return evidence is given, and the formula examples do not consistently define timing or price measures.

Tags

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