Screening Stocks with RSI, Company Type, and Opening Gap Limits

Summary

The document outlines a stock screen requiring a 14-period RSI below 65, a favorable company type, and an opening move of less than 6% in absolute terms relative to the previous close. It frames the RSI condition as a way to avoid highly elevated readings and combines it with a company classification and a limit on the opening gap. Formula references and a Python example are included to illustrate how price data and RSI might be used to filter listed stocks.

The article supplies no backtest, selected-stock examples, or evidence that these conditions produce better entries or returns. It acknowledges that the screen may miss company or market risks and recommends considering other indicators, fundamentals, industry context, and market conditions. The company-type criterion is left to the user to define, and the code's realtime data and RSI calculation are not accompanied by a clear historical lookback or timing procedure. Those gaps make the screen a starting point for research rather than a fully specified, validated strategy.

Key ideas

• The proposed screen combines RSI below 65, a favorable company classification, and an opening gap under 6% in absolute size.
• The RSI condition uses a 14-period lookback.
• The document suggests supplementing the filters with other indicators and fundamental or industry analysis.
• It gives no performance evidence, and the company classification and data-timing details remain unspecified.

Tags

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