Screening Stocks with RSI Below 65 and Three Consecutive Down Days

Summary

This stock screen combines a 14-period Relative Strength Index below 65 with three consecutive sessions in which each close is below its open. It also restricts the observations to data from 2021. The post gives indicator logic and a Python example, making the selection conditions clear, though it does not explain how signals would translate into entries, exits, or position sizes.

The document characterizes the setup as a way to find technically weak stocks, but reports no backtest, returns, or comparison with a benchmark. It cautions that technical indicators can lag or generate false signals, and that the rule omits broader market conditions and other company or sentiment information. It recommends risk controls and testing across multiple periods, while offering no implementation details for those steps. Because the date filter is historical, applying the screen to current data would require changing that condition and evaluating the resulting strategy afresh.

Key ideas

• The screen requires a 14-period RSI below 65.
• It identifies three consecutive sessions where the close is below the open.
• The example restricts the historical data to 2021.
• The post supplies no performance evidence or rules for trading the selected stocks.
• It warns that technical signals can lag and may misclassify market conditions.

Tags

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