Screening Stocks with a 20-Day Trend, RSI Cap, and Market-Size Floor

Summary

This stock screen selects shares with a market capitalization of at least 200 million, a 14-period RSI below 65, and a 20-day moving average above the 120-day moving average. The moving-average relationship is used as a short-term-versus-longer-term trend filter, while the RSI ceiling avoids names above the chosen momentum threshold and the size condition excludes smaller firms. The document includes example indicator logic and a sketch of a screening workflow.

It does not report a backtest, returns, or evidence that these thresholds improve results. The author flags dependence on technical indicators, possible exclusion of fundamentally strong stocks in short-term declines, and the omission of moving-average slope. Adding another technical indicator or a fundamental growth measure is suggested, but not evaluated. The sample code contains platform-specific and incomplete elements, so the screen would need careful implementation checks before it could be reproduced consistently.

Key ideas

• The screen requires market capitalization of at least 200 million, 14-period RSI below 65, and the 20-day average above the 120-day average.
• The moving-average comparison is intended to identify a stronger short-term trend relative to the longer trend.
• The document offers no backtest or evidence for the chosen thresholds.
• It notes that the screen omits moving-average slope and may overlook fundamental factors or stocks in temporary declines.

Tags

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