Screening Beverage and Alcohol Stocks with RSI and Weekly Price Bars

Summary

This stock-selection post proposes filtering for companies in the beverage and alcohol import-export industry whose 14-period RSI is below 65 and whose weekly chart meets a red-bar condition. It presents the combination as a mix of an industry classification, a momentum-related technical indicator, and a weekly price signal. The stated rationale is to identify stocks with potential upside while using the industry filter to narrow the universe.

The post includes indicator formulas and sample implementation references, but it gives no backtest, performance figures, or evidence that the filters identify undervalued or growing companies. Its own caveats include sensitivity to market conditions and possible overfitting across time periods. It suggests adding fundamentals and other indicators, but does not define those additions or test whether they improve results. The weekly-bar condition is also not explained in enough detail here to judge how it is calculated.

Key ideas

• The screen combines an industry filter with an RSI threshold and a weekly price-bar condition.
• The RSI threshold is intended to select stocks without an especially high RSI reading.
• The post offers no backtest or performance evidence for the proposed rules.
• The author notes overfitting and changing market conditions as potential weaknesses.

Tags

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