Stock Screening with Price Amplitude, RSI, and Revenue Growth

Summary

This stock-selection rule combines daily price amplitude above 1, RSI below 65, and revenue in 2021 more than 1.1 times revenue in 2018. The document describes the mix as a way to pair technical conditions with a measure of company growth. Its formula and Python example calculate amplitude and RSI, compare revenue across the two stated years, and then rank qualifying stocks by relative price strength, retaining the strongest 20% of the selected group.

The post provides no backtest, sample, or performance results, and its description of the screen as balancing growth and safety is not supported by evidence in the text. It acknowledges that using only two revenue observations and a small set of indicators leaves out profitability, broader financial condition, macroeconomic context, and industry prospects. It suggests adding measures such as profit growth and dividend yield, along with broader context, but does not test those additions. The rule is best understood as an initial screen rather than a complete assessment of investment quality.

Key ideas

• The screen requires amplitude above 1, RSI below 65, and 2021 revenue more than 1.1 times 2018 revenue.
• The example ranks qualifying stocks by relative price strength and keeps the strongest 20% of the selected group.
• The document provides formulas and example logic but no backtest or performance evidence.
• Two revenue observations do not capture profitability, broader financial health, or intervening business conditions.
• Suggested additions include profit growth, dividend yield, macroeconomic factors, and industry analysis.

Tags

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