Equity Screening with RSI, Large-Order Flow, and Rising Moving Averages

Summary

This stock selection rule combines three signals: RSI below 65, the product of price change and net volume from very large orders being positive, and a rising alignment of the 5-, 10-, 20-, and 60-day moving averages. The provided Python example also requires the settlement price to be below the opening price. Together, these filters aim to find shares with a favorable trend and a positive large-order flow reading while avoiding an RSI reading above the stated threshold.

The document explains the indicators and gives sample screening logic, but it reports no backtest or performance evidence. It cautions that price behavior can dominate the selection and leave company fundamentals unexamined, especially in unstable markets. It suggests adding valuation, dividend, and earnings-growth factors, assigning weights, and considering both short- and long-term trends. The examples are illustrative; the document does not specify a holding period, exit rules, position sizing, or how to validate the signal across market conditions.

Key ideas

• The screen requires RSI below 65 and positive price-change times large-order net volume.
• It also looks for short- to long-term moving averages aligned in ascending order.
• The example code adds a condition that settlement is below the opening price.
• The document warns that trend-focused screening can omit company fundamentals and may be unreliable in unstable markets.

Tags

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