Screening Stocks by Amplitude, Prior-Day Limit Status, and RSI

Summary

This stock-selection approach combines a daily amplitude threshold with two filters: the stock did not hit its upper price limit on the prior trading day, and its six-period RSI is below 65. The stated rationale is to avoid stocks that have just made an unusually large upward move and to select shares with some activity but a less elevated RSI reading. The post presents the screen as a starting point rather than a complete investment model.

The article includes an RSI formula reference and sample Python logic using market data, but the code’s limit-list handling and data joins are not demonstrated or validated. It provides no backtest, returns, or comparison against a benchmark. It warns that selected stocks remain exposed to market and company-performance risk, and suggests adding other technical signals or fundamental information. The claimed possibility of further upside for lower-RSI names is not supported with empirical evidence.

Key ideas

• The screen requires amplitude above 1%, no upper-limit event on the prior day, and six-period RSI below 65.
• The author treats prior limit status and RSI as filters for recent price strength and relative momentum.
• The article provides sample implementation references but no validation of the data logic.
• No backtest results or benchmark comparisons are reported.
• The post recommends considering additional technical and fundamental factors and managing market risk.

Tags

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