Combining RSI, Industry, and Turnover in a Stock Screen

Summary

This stock screen selects companies in the beverage and alcohol import-export industry when RSI is below 65 and prior-day turnover exceeds 8%. The note describes RSI as a short-term price condition and treats the industry category as a fundamental filter, while high turnover is used as a sign of recent market activity. The provided examples also exclude special-treatment stocks, although the headline rules do not emphasize that condition.

The article includes indicator and Python examples but offers no backtest, measured returns, or evidence that the industry has the claimed growth or profitability characteristics. It cautions that a single day's turnover may not represent price prospects and that concentrating on one industry carries exposure to sector conditions. It suggests adding other technical measures and comparing industries, alongside assessing economic, policy, and sector trends. The sample implementation should be checked: it calculates RSI but does not apply the RSI threshold in its final filter.

Key ideas

• The stated screen requires RSI below 65, membership in a beverage and alcohol import-export industry group, and prior-day turnover above 8%.
• The examples also show excluding special-treatment stocks.
• No backtest or performance results are provided.
• The note identifies single-day turnover and industry concentration as limitations.
• The sample Python filter does not use the calculated RSI condition.

Tags

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