Combining RSI, Earnings Growth, and Price Strength for Stock Selection

Summary

The proposed stock screen combines a technical condition, a fundamental growth filter, and a price trend condition. It selects shares with RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and at most 100%, and a price described as entering a strong upward move. The article presents this as a way to seek companies with earnings growth and supportive price action. It includes illustrative formula and Python references for calculating RSI, filtering profit growth, and comparing price with a derived upper line.

The document does not provide a backtest, portfolio construction rules, transaction cost assumptions, or evidence that the screen predicts returns. It acknowledges that reliance on price movement can expose the approach to speculation and shifting market themes, and suggests combining more technical and fundamental measures. The supplied implementation references use different proxy calculations for the upward-move condition, so the intended signal is not fully specified or demonstrably consistent across platforms. The thresholds describe a screening idea, not a validated trading strategy.

Key ideas

• The screen requires RSI below 65 and parent-company net profit growth above 20% and no greater than 100% year over year.
• It also requires a price condition intended to identify an emerging upward trend.
• The article combines technical and fundamental criteria but provides no performance validation.
• Its formula and Python references describe different proxies for the upward-move condition.
• The author notes that price-led selection may be affected by speculation and market themes.

Tags

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