RSI, Daily Gains, and a Weekly Moving Average Crossover Stock Screen

Summary

This document describes a stock screen requiring RSI below 65, a daily gain greater than 1%, main-board listing, and a weekly price move above the 30-week moving average. The rationale combines a recent price advance and a moderate RSI reading with a longer-term trend filter. The article supplies example screening logic and Python code that calculates RSI and weekly moving averages, then selects qualifying stocks. The example also ranks candidates by the number of recorded crossovers and returns a limited list.

The article cautions that price and technical signals can reflect market sentiment or news, while changes in company fundamentals may be missed. It recommends considering additional technical and fundamental measures, diversifying positions, and managing risk. The document does not provide a backtest, performance statistics, or evidence for its expectation of stable long-term gains. Its code’s operational details, including how it defines a weekly crossover, should be checked before use.

Key ideas

• The screen combines RSI below 65, a daily gain above 1%, main-board membership, and a weekly move above the 30-week average.
• The longer-term moving average is intended to filter for an upward trend.
• The example code calculates RSI and weekly moving averages and ranks qualifying stocks by crossover count.
• The article warns that technical signals can miss fundamental changes and recommends diversification and risk controls.

Tags

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