Screening Metaverse Stocks with a Long-Term Moving Average and RSI

Summary

This document describes an equity screen combining metaverse-sector membership, a closing price above the 250-day moving average, and a six-period RSI below 65. It presents the moving average as a long-term price filter and RSI as a way to select stocks considered relatively weak, then suggests evaluating candidates for investment. It also gives example implementations in a charting formula and Python, though the Python example depends on specific data fields and appears to contain assumptions that may need checking against the provider’s actual data interface.

The post identifies broad market moves, unreliable company reporting, and indicator misclassification as risks. It recommends adding other technical indicators and reviewing financial statements, but provides no historical test, benchmark, transaction-cost analysis, or evidence that the screen predicts returns. The sector definition and interpretation of “weak” RSI are not fully specified, and the proposed criteria alone do not define portfolio sizing, entry timing, or exit rules.

Key ideas

• The screen selects metaverse stocks whose previous-day price is above the 250-day moving average.
• It also requires a six-period RSI below 65.
• The document offers formula and Python examples for applying the criteria.
• It identifies market risk, reporting risk, and RSI errors as limitations.
• No performance results or complete portfolio and exit rules are provided.

Tags

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