Stock Screening with Moving Averages, RSI, and Price Range

Summary

This stock screen combines three technical conditions: the 20-day moving average must exceed the 120-day moving average, RSI must be below 65, and the intraday high-low range must exceed 1% of the closing price. Together, these rules aim to find stocks with a positive medium-term trend while avoiding very high RSI readings and requiring some price movement. The document also sketches implementations using a charting formula and a Python data library.

The rationale is descriptive rather than tested: the moving averages are presented as trend context, RSI as a measure of relative stability, and range as a sign of upward movement. No performance results or validation method are supplied. The document flags that technical-only screening can select companies with weak fundamentals and may miss relevant industry or policy factors. It suggests adding financial measures and adjusting moving-average periods to market conditions; the supplied code and indicator descriptions do not establish that the screen is profitable or robust.

Key ideas

• The screen requires the 20-day moving average to be above the 120-day moving average.
• It also filters for RSI below 65 and a high-low range greater than 1% of the close.
• The stated rationale is to combine trend context, RSI, and price movement.
• No backtest or performance evidence is provided.
• The document identifies missing fundamental and broader market factors as limitations.

Tags

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