Screening for RSI, Seven Down Sessions, and Recent Limit-Ups

Summary

This stock screen combines three conditions: RSI below 65, seven consecutive sessions in which the close is no higher than the open, and more than two limit-up sessions within the previous 10 days. The stated intent is to pair a measure of recent weakness with evidence of unusually active upward price moves, then select stocks meeting all conditions. The document also sketches indicator and data-query approaches for implementing the screen.

The article presents no backtest or evidence that the combination improves returns. It notes that the conditions focus on technical behavior and market activity rather than fundamentals, and that stocks with repeated limit-ups may be experiencing an unsustainable burst. It suggests adding fundamental and technical measures, such as RSI divergence or another indicator, and adjusting the limit-up threshold to market conditions. The material does not define portfolio sizing, entry timing, or exit rules, and the sample code is illustrative rather than a demonstrated validation of the screen.

Key ideas

• The screen requires RSI below 65 and seven consecutive sessions with closing prices no higher than opening prices.
• It additionally requires more than two limit-up sessions in the preceding 10 days.
• The conditions combine recent price weakness with evidence of recent sharp upward moves.
• The approach omits fundamentals and may select stocks whose limit-up activity does not persist.
• No performance evidence, position sizing, or trade exit method is provided.

Tags

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