Equity Screening with RSI, Three Down Sessions, and Position Increases

Summary

This post proposes a stock-selection screen using RSI below 65, three consecutive down sessions, and a current-day increase in position share above 5%. It frames the combination as a way to blend price behavior with a measure of capital activity, and suggests that users add fundamental and broader market-risk checks. The document includes formula and Python examples, though the examples do not consistently express the stated three-down-session condition: some comparisons check prior candles as bullish, while other clauses check for bearish candles.

No backtest results, sample period, benchmark, or evidence of predictive performance are supplied. The post warns that technical and flow measures can miss fundamental problems and broader liquidity or market shocks. It also gives no precise definition for the position-increase data or handling of missing observations. The screen is therefore an unvalidated candidate-selection idea; its candle conditions and data definitions should be made consistent before any testing or use.

Key ideas

• The proposed screen combines RSI below 65, three consecutive down sessions, and a position-increase share above 5%.
• The author suggests supplementing technical and flow conditions with fundamental and market-risk checks.
• The examples do not consistently encode the stated three-down-session rule.
• The post provides no backtest evidence or precise definition of the position-increase measure.

Tags

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