Screening Main Board Stocks with RSI, Daily Gains, and Three Down Days

Summary

The screen targets main board equities that have a 14-period RSI below 65, a daily gain above 1%, and a pattern described as three consecutive down days. The article presents the combination as a way to identify stocks using both technical conditions and recent price activity, and includes example selection logic in SQL-like and Python forms.

The post acknowledges that the screen ignores company fundamentals and may perform poorly in volatile markets. It suggests adding valuation, dividends, growth, and industry analysis, alongside diversification and risk controls. There is no backtest, return series, or evidence that the stated conditions produce an advantage. The written criteria and example code also appear inconsistent: requiring a positive current-day move alongside three down days may depend on how the sequence is defined, while the SQL-like snippet's comparisons do not clearly establish three consecutive declines. Implementation should therefore be checked against the intended dates and data fields before use.

Key ideas

• The proposed screen combines RSI below 65 with a daily gain above 1% and three consecutive down days.
• It restricts the universe to main board equities.
• The article recommends adding fundamental and industry filters, diversification, and risk controls.
• No backtest or performance evidence is provided.
• The written conditions and code examples may not define the same sequence consistently.

Tags

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