Stock Screening with Intraday Range, RSI, and Auction Net Buying

Summary

The document describes a stock selection screen that combines three conditions: price amplitude above 1, RSI below 65, and positive net buying by major participants during the opening auction. It interprets the range as a volatility filter, RSI as a check on overbought conditions, and auction net buying as a sign of early buying interest. A further suggestion ranks qualifying stocks by relative price strength and keeps the strongest portion of the list.

The article provides indicator formulas and illustrative selection logic, but it reports no backtest, out-of-sample results, or evidence that the filters improve returns. It cautions that auction flows do not predict subsequent price direction and that the screen focuses on short-term signals rather than long-term value. It suggests comparing stocks within industries and adding technical and fundamental criteria, without specifying how to validate or combine them.

Key ideas

• The screen selects stocks with amplitude above 1, RSI below 65, and positive auction net buying.
• It treats auction buying as a possible indicator of interest, not a guarantee of future gains.
• A relative-strength ranking is proposed to prioritize stronger qualifying stocks.
• The document recommends industry comparisons and additional technical or fundamental filters.
• No empirical performance results or validation method are provided.

Tags

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