Combining RSI, Price Range, and Opening Gain Limits in a Stock Screen

Summary

This post presents a stock-selection filter combining three conditions: RSI below 65, price amplitude above 1, and a 9:25 gain below 6%. Its stated aim is to find shares with some potential while avoiding those that have already risen too sharply in the short term. The document describes RSI and amplitude as technical filters and uses the opening-period gain cap to constrain recent price strength. It includes example indicator definitions and a Python outline using market data to screen stocks.

The author notes that a single early-session price change says little about a stock’s longer-term direction, and that RSI and amplitude can give misleading signals. Restricting the check to one time can also exclude stocks that later perform well. Suggested refinements include adding fundamental variables, evaluating price changes over multiple intervals, and adjusting indicator settings to market conditions. No backtest, benchmark, or evidence of profitability is reported. The indicator formula and data fields in the example are not fully specified, so the stated rule would need careful validation before use.

Key ideas

• The screen combines an RSI ceiling, a minimum price-amplitude condition, and a cap on the 9:25 gain.
• The opening gain limit is intended to avoid shares with excessive short-term advances.
• RSI, amplitude, and a single early price observation can all misrepresent future direction.
• The post recommends adding fundamentals and considering price changes over more than one interval.
• No backtest or profitability evidence is provided.

Tags

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