Equity Screening with RSI, Three Down Days, and Dividend Criteria

Summary

The document proposes screening equities with a 14-period RSI below 65, three consecutive declining sessions, and a dividend-related ratio above 25% based on 2019 data. It presents the combination as a way to pair a technical condition with a fundamental filter, and includes formula and Python examples intended to identify matching stocks. The discussion suggests supplementing the screen with market sentiment, fund flows, and price-volume analysis.

No backtest, sample universe, or performance results are reported. There is also a notable mismatch between the prose and the example conditions: the stated three-day decline is represented by prior closes greater than prior opens, which describes bullish candles rather than declining ones. The dividend calculation’s field definitions and timing also need validation before use. The author notes that a historical payout measure may not represent long-term business quality and that the strategy may vary with market conditions. This is a screening proposal, not a demonstrated source of returns.

Key ideas

• The proposed screen combines RSI below 65, a three-session candle condition, and a dividend-related threshold.
• The examples encode prior closes above opens, which conflicts with the stated requirement for three declining days.
• The article provides no backtest or performance evidence.
• Historical dividend measures may not capture long-term company quality, and the screen may be regime-sensitive.

Tags

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