RSI and Moving-Average Proximity for Beverage-Industry Stock Screening
Summary
The document describes a stock screen combining an RSI threshold below 65, membership in the beverage and alcohol import-export industry, and a condition it labels a rounded-arc pattern. The supplied formula defines that pattern as the five-period and twenty-period moving averages being within 3% of one another. It presents the screen as a mix of technical and industry filters, with the pattern intended to identify stocks that may rebound after a pullback or consolidation.
The article offers indicator formulas and example selection logic, but provides no backtest, performance data, or evidence that the filters predict returns. It also acknowledges that the selection rules are simple and that the chart shape does not guarantee a rise. Moving-average proximity alone does not establish a rounded price structure, so the pattern label should be treated cautiously. The author suggests comparing other indicators and chart patterns, but does not test those additions.
Key ideas
- The screen requires RSI below 65 and membership in a specified beverage and alcohol import-export industry.
- Its rounded-arc condition is operationalized as close values for the five-period and twenty-period moving averages.
- The article frames the setup as a possible rebound screen after a pullback or consolidation.
- It provides no performance testing, and the stated filters do not establish that a rebound will occur.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.