A Stock Screen Using RSI, Three Consecutive Down Days, and Listing Age

Summary

This stock-selection rule combines a 14-period RSI below 65 with three consecutive declining sessions and a minimum listing age. The example implementation specifies more than 120 days since listing and evaluates the RSI and recent candle conditions to form a candidate list. The idea pairs a technical filter with a basic seasoning requirement for newly listed shares.

The document provides formula and Python examples, but no backtest, performance evidence, universe definition, or rules for portfolio construction and execution. It cautions that these inputs omit factors such as market sentiment and industry direction, and that listing age alone does not establish company quality. It suggests supplementing the screen with price-volume, financial, and industry information, while leaving those additions unspecified. The examples also describe the three-session condition through prior candle comparisons, so users should verify that the candle direction matches their intended definition before applying the rule.

Key ideas

• The screen selects stocks with a 14-period RSI below 65.
• It combines the RSI filter with three consecutive declining sessions.
• The example requires stocks to have been listed for more than 120 days.
• The document provides formula and Python examples but no evidence of strategy performance.
• The author suggests adding financial, industry, or price-volume factors to address the screen’s limited scope.

Tags

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