Screening 2021 IPOs by Turnover and RSI

Summary

This stock screen selects shares listed in 2021 with turnover between 3% and 12% and an RSI below 65. The accompanying explanation presents turnover as a liquidity or activity filter and RSI as a short-term price condition. A technical-indicator example uses RSI lookbacks of 6, 12, and 24, requiring all three readings to remain below 65.

The article characterizes the approach as short-term and warns that RSI can react to temporary price swings; it also notes that the screen omits company fundamentals. It proposes adding valuation and profitability measures, along with other technical indicators, but provides no evidence that these additions help. The written rule does not specify whether turnover is measured on the screening date or over a period, and the code excerpt does not implement the full listing-year and turnover filters. No backtest or performance results are reported.

Key ideas

• The screen targets stocks listed in 2021 with turnover between 3% and 12% and RSI below 65.
• The indicator example checks RSI over three lookback periods: 6, 12, and 24.
• The article warns that short-term price swings can make RSI misleading and that fundamentals are excluded.
• Suggested refinements include fundamental measures and additional technical indicators, without reported validation.
• The code excerpt does not show implementation of all stated selection conditions.

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