Screening Stocks by Amplitude, Ten-Day Average, and RSI

Summary

This note describes a stock screen requiring amplitude above a threshold, an opening price near the ten-day moving average, and a six-period RSI below a stated ceiling. The moving-average condition is implemented as a band around the average, while the amplitude formula compares the prior period’s high and low with its close. The conditions are combined to identify candidates. The article provides indicator and Python examples, but the amplitude calculation and timing conventions may differ across data sources and implementations.

The author presents the screen as a way to find volatile stocks near a short-term average with RSI below the selected level, while acknowledging that the conditions are limited and RSI only reflects price movement. Additional indicators and periodic adjustment are suggested. No backtest, sample, or performance evidence is reported, and the claim that such stocks may have rebound potential is not demonstrated. The entry criteria therefore need precise data definitions and independent evaluation before use.

Key ideas

• The screen combines an amplitude threshold, an opening price near the ten-day average, and an RSI ceiling.
• The moving-average condition is expressed as a range around the average.
• Indicator timing and amplitude definitions may vary across implementations.
• The note acknowledges that a small number of price-based conditions can omit important factors.
• No backtest or performance evidence is included.

Tags

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