Screening Stocks with RSI Below 65, Seven Down Days, and a KDJ Cross

Summary

This stock screen combines three technical conditions: RSI below 65, seven consecutive sessions with closing prices at or below opening prices, and a KDJ bullish crossover. The document presents the setup as a way to find stocks that have recently weakened but may be starting to turn upward. It gives reference RSI and KDJ calculation periods and sketches a Python selection workflow using market data.

The rationale is that the RSI threshold avoids selecting especially overbought shares, the run of down days identifies recent weakness, and the KDJ crossover may signal a change in short-term momentum. The material provides no performance results or backtest evidence, and its sample code and indicator fields may need adaptation to the actual data source. It also acknowledges that the screen relies only on technical signals, can miss company and market developments, and may favor short-term moves at the expense of longer-term trends. Fundamental checks or additional indicators could be considered, though no validation of those additions is supplied.

Key ideas

• The screen requires RSI below 65, seven consecutive down sessions, and a bullish KDJ crossover.
• The RSI and KDJ periods are provided as configurable reference settings.
• The proposed rationale combines recent price weakness with a possible short-term momentum turn.
• The document offers no backtest or evidence that the conditions produce profitable trades.
• Technical-only screening may overlook fundamentals and longer-term market direction.

Tags

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