Screening Stocks with a Rising Moving-Average Trend, Low Price, and RSI Ceiling

Summary

This stock screen selects shares whose 20-day moving average is at or above the 120-day average, whose price is below a stated price ceiling, and whose six-period RSI is below a stated threshold. The article presents the combination as a way to pair a shorter-term trend condition with a price filter and a cap on RSI. It supplies formula references and recommends considering market and sector conditions alongside the rule.

The post gives no backtest, performance statistics, benchmark comparison, or empirical support for the proposed thresholds. It cautions that short-term indicators and volatile or unclear market conditions can lead to poor selections and affect risk control. The text describes the price filter as value or risk conscious, but it does not establish that a low share price measures valuation. It also offers no entry timing, exit rules, position sizing, or portfolio construction method, and its suggested additions are not evaluated.

Key ideas

• The screen combines a 20-day versus 120-day moving-average condition with a low share-price filter and an RSI ceiling.
• The shorter moving average is used to represent trend, while RSI limits the selected stocks’ indicator readings.
• The article advises considering broader market and sector conditions when applying the screen.
• No backtest or performance evidence is supplied, and trade management rules are unspecified.

Tags

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