Combining RSI, Large-Order Flow, and Two-Day Highs in a Stock Screen

Summary

This proposed stock screen combines an RSI reading below 65, a factor involving price change multiplied by net very-large-order flow, and a requirement that the current high be the highest within two days. The article frames the conditions as a blend of technical momentum, trading activity, and a short-term high breakout, intended to identify shares with potential upside.

The article provides a Python sketch that filters stocks on positive net flow, turnover, valuation and industry conditions, then examines historical highs and ranks a limited list by market capitalization and net flow. However, the code does not clearly implement the stated RSI and price-change-times-order-flow conditions, and the high comparison is not a complete, unambiguous two-day breakout test. No backtest or measured results are provided. The author notes that changing market conditions, volatile stocks, and weak company finances can undermine the screen, and suggests adding indicators, broad-market context, and fundamental risk checks.

Key ideas

• The stated screen pairs RSI below 65 with large-order net flow and a two-day high condition.
• The accompanying Python sketch adds liquidity, valuation, industry, and ranking filters.
• The implementation does not clearly match all conditions in the prose description.
• The article reports no backtest or evidence that the screen predicts gains.
• It recommends considering market direction and company fundamentals alongside technical filters.

Tags

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