RSI and Moving-Average Screen for Beverage and Alcohol Importers

Summary

This stock screen combines a relative strength index (RSI) below 65, membership in the beverage and alcohol import-export industry, and a 20-day moving average above the 120-day moving average. It pairs a momentum or trend filter with an industry classification; the document describes the moving-average relationship as a way to identify trend direction and RSI as a measure of buying and selling conditions.

The article gives indicator formulas and a Python example, although that example also includes a market-cap floor and excludes special-treatment stocks, conditions absent from the stated screen. It reports no backtest or performance evidence. The authors caution that moving-average signals can be false, and that qualifying stocks may still carry company or industry risks. They suggest adding indicators or financial growth measures and using risk controls; the screen alone is not presented as a reliable trading system.

Key ideas

• The screen selects beverage and alcohol import-export stocks with RSI below 65.
• It also requires the 20-day moving average to exceed the 120-day moving average.
• The moving-average condition is intended to capture an upward trend, but can produce false signals.
• The article provides no performance test and flags company and industry risks.

Tags

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