Combining RSI, Price-Volume Flow, and Dividend Ratio for Stock Selection

Summary

This proposed stock screen combines a technical condition with a dividend measure. It calls for RSI below 65, a positive product of percentage price change and a large-order net-flow measure, and a 2019 dividend ratio above 25%. The article describes the first two conditions as technical inputs and the dividend ratio as a basic company characteristic, aiming to identify shares with favorable technical readings and dividend history.

The document offers no performance data, backtest, or comparison with a benchmark, so it does not establish that these filters improve selection or returns. The dividend test refers specifically to 2019, which may not represent current payout policy. The article also acknowledges that the screen omits other financial conditions and market or industry developments, and suggests adding profitability and financial health measures. Its sample implementation includes a time-of-day check, though that timing rule is not explained as part of the stated selection logic.

Key ideas

• The screen requires RSI below 65 and a positive product of price change and large-order net flow.
• It includes a 2019 dividend ratio threshold above 25%.
• The dividend input is historical and may not capture current company conditions.
• No backtest or evidence of predictive performance is provided.
• The article suggests adding financial and market context to the selection rules.

Tags

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