Screening Equities with RSI Below 65 and Seven Down Sessions

Summary

This post describes an equity selection screen that combines an RSI below 65 with seven consecutive declining sessions and excludes stocks that hit the daily price limit on the prior day. Its rationale is to identify recently weak stocks while avoiding those that may be temporarily inflated after a limit-up move. The post also includes formula and Python-style references for implementing the filters.

The material provides a rule set and a qualitative explanation, but no backtest, return statistics, or evidence that the screen is profitable. The accompanying example code and indicator references may not fully implement the stated conditions consistently. The author notes that the screen omits fundamentals and broader market conditions, and suggests combining technical signals with company, industry, and market context before relying on it.

Key ideas

• The screen selects stocks with RSI below 65 and a sequence of seven declining sessions.
• It excludes stocks that reached the daily price limit on the previous session.
• The post gives implementation references but does not report backtest results.
• Fundamental conditions and broad market direction are identified as omitted factors.

Tags

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