Oversold Stocks with Large-Order Flow and Seven Down Days

Summary

This stock screen combines a 14-period RSI below 65, a positive product of daily percentage change and a measure of very large-order net inflow above 1, and negative returns across seven consecutive sessions. The stated rationale is to find stocks that have weakened technically and may be positioned for a rebound, while also considering large-order flows. The sample code adds turnover and positive valuation filters and returns a limited list of candidates.

The document presents the screen as a selection idea, not as a validated strategy. It provides no backtest, benchmark comparison, transaction-cost analysis, or evidence that seven declining sessions imply a rebound. It warns that technical inputs may misrepresent price trends, data may be incomplete or inaccurate, and broad market or company fundamentals can overwhelm the signals. It suggests adding other indicators or fundamental filters, but does not evaluate those changes.

Key ideas

• The screen combines an RSI ceiling, a large-order-flow condition, and seven consecutive negative daily returns.
• The proposed rationale is that weak price action may create rebound potential when flow measures also meet the screen’s condition.
• The accompanying code adds turnover and valuation filters to the stated signal conditions.
• No performance test or evidence of profitability is provided, and market conditions or company fundamentals may invalidate the idea.

Tags

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