Screening Non-STAR Stocks with RSI and Best-Level Bid-Ask Volume
Summary
The proposed stock filter combines RSI below 65, best bid volume greater than best ask volume, and exclusion of STAR Market listings. The article interprets RSI as a way to identify relatively low-priced shares and the bid-ask size comparison as a sign of buying strength. It provides brief formula and Python examples for applying the conditions, but the examples do not actually use the calculated RSI in the final filter.
The article presents no historical test, trade outcomes, or evidence that these rules identify undervalued companies. It acknowledges that technical indicators cannot capture business quality or intrinsic value, and that relying on a narrow set of signals may constrain the candidate pool. It suggests adding financial measures such as valuation ratios, profitability, and growth, while checking industry conditions to broaden the analysis.
Key ideas
- The proposed screen uses RSI below 65 and bid volume above ask volume.
- It excludes stocks in the STAR Market segment.
- The article treats these signals as indicators of relative cheapness and buying pressure, without validating those interpretations.
- The sample Python logic calculates RSI but does not apply it to the filter.
- Fundamental and industry analysis could address gaps in the technical screen.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.