Screening Mid-Cap Stocks for RSI Below 65 and Rising Lows

Summary

The strategy screens stocks using three criteria: RSI below 65, a specified mid-range in circulating market capitalization, and a rising-bottom pattern. The supplied Python example defines that pattern over a rolling window: the latest close must be above the window's low and at least halfway from that low toward the window's high. When five or more stocks qualify, the example ranks them by percentage change and returns the top five.

The article presents the rising-bottom pattern as a possible sign of recovery, while the RSI and market-cap filters further constrain the candidates. It gives no backtest results or evidence that the pattern predicts a rebound. The author warns that a single price pattern may fail across market regimes and can exclude smaller stocks. Suggested additions include other technical indicators, market and sector context, and checks of business and earnings conditions. The stated rules are therefore a screening hypothesis, not a complete trading or risk-management plan.

Key ideas

• The screen combines RSI below 65 with a mid-range circulating market capitalization and a rising-bottom condition.
• The example defines rising bottoms by comparing the latest close with the low and high of a rolling price window.
• If enough stocks qualify, the example ranks candidates by percentage change and selects a limited number.
• The article provides no performance evidence and cautions that a single pattern may not adapt to changing markets.

Tags

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