Screening Stocks by RSI, Daily Range, and Ten-Day Gains

Summary

This screening rule looks for stocks with a positive but limited ten-day gain, a daily amplitude greater than 1, and an RSI below 65. The intended interpretation is that candidates have shown recent upward movement without appearing overbought according to the RSI threshold. The document also sketches how to apply the conditions using historical stock data and identifies RSI, daily high-low range, and recent percentage change as the inputs.

The article offers no backtest results, benchmark, or evidence that these thresholds produce positive returns. It notes that the screen ignores company fundamentals, treats RSI as a static cutoff rather than examining its direction, and focuses on a short window without accounting for longer-term performance. It suggests incorporating fundamental information, RSI changes, additional technical indicators, and a longer historical view. The conditions are therefore a simple candidate-selection rule whose thresholds, data definitions, and out-of-sample behavior would need independent evaluation before use.

Key ideas

• The screen requires a positive ten-day gain below 35 percent.
• It also requires daily amplitude above 1 and RSI below 65.
• The stated goal is to find recent gainers that are not overbought by the chosen RSI cutoff.
• The document provides no backtest or evidence that the screen predicts returns.
• It identifies missing fundamentals, RSI direction, and longer-term price behavior as limitations.

Tags

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