Filtering Stocks by RSI and the 9:25 Indicative Price Move

Summary

This post proposes selecting stocks with RSI below 65, excluding the STAR Market, and filtering for a price increase below 6% at 9:25. The intended screen combines a technical indicator with an early-session price condition and a market-segment exclusion. Its example code calculates RSI from daily closing prices and compares the current open with the previous close as a proxy for the pre-market move; those inputs do not necessarily represent a genuine 9:25 indicative price observation.

The document reports no backtest, benchmark, or performance evidence. It notes that the screen omits company fundamentals and that the early price change may not predict the day’s outcome. It suggests adding valuation measures, observing other intraday periods, and calibrating the price threshold with historical data. The implementation also uses stock-code and name-based exclusions, which may not precisely define the intended market segment, and it does not explain the RSI period beyond the code’s example. The rules are therefore an illustrative filter, not evidence of a tested trading edge.

Key ideas

• The proposed screen combines RSI below a threshold with a cap on the early-session price increase.
• It excludes a named Chinese market segment from the candidate universe.
• The code uses the opening price relative to the previous close as a proxy for a 9:25 move.
• The post gives no backtest or evidence that these filters predict returns.
• It identifies missing fundamentals and uncertain intraday effects as limitations.

Tags

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