Rising 30-Day Average, Breakout-Style Signal, and RSI Below 65

Summary

This stock-selection rule combines an RSI below 65, a condition labeled as the start of a strong upward move, and a rising 30-day moving average. The article’s formula defines the upward-move condition by requiring the 30-day highest high and lowest low to match their prior readings. Together, the criteria aim to find stocks with an upward short-term trend while RSI remains below the chosen ceiling. Example indicator formulas and a Python outline are included.

The article cautions that RSI fluctuates, the breakout-style condition is short term, and a rising moving average can reflect a market-cycle effect rather than durable strength. The selected stocks may diverge from the broader market, and the screen may omit other attractive candidates. It suggests adding indicators or fundamental data and considering stop-loss rules. No backtest or performance evidence is provided, so the criteria remain an unvalidated screening idea.

Key ideas

• The screen requires RSI to be below 65.
• It defines the upward-move signal using unchanged 30-day highest-high and lowest-low readings versus the prior period.
• It requires the 30-day moving average to be rising.
• The article notes that these signals may be short-lived or misaligned with broader market direction.
• It provides no backtest results for the combined screen.

Tags

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