Stock Screening with Amplitude, RSI, and Buy-Sell Volume Ratio

Summary

The document describes a stock screen combining three conditions: price amplitude above 1, RSI below 65, and an outside-to-inside volume ratio above 1.3. It presents amplitude as a measure of price movement, RSI as an overbought or oversold gauge, and the volume ratio as an indication of buying versus selling pressure. A further ranking step orders qualifying stocks by relative price strength and keeps the top fifth of the candidates.

The document warns that the screen relies mainly on technical data and omits company financials and industry conditions. It also notes that results may be sensitive to parameter choices, reference periods, and data fluctuations, while order-flow ratios may reverse quickly. Suggested additions include fundamental measures, market context, and other indicators such as OBV and DMI. The document gives example formulas and code but reports no backtest results or evidence that the screen is profitable; the ratio calculation details also appear inconsistent across its examples.

Key ideas

• The screen selects stocks with amplitude above 1, RSI below 65, and an outside-to-inside volume ratio above 1.3.
• Amplitude and RSI describe price movement and the position of recent gains relative to losses.
• The document proposes ranking qualifying stocks by relative price strength and retaining the top fifth.
• Technical-only filters can omit financial and industry information, and short-term order flow can change direction.
• The examples offer implementation references but provide no performance testing.

Tags

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