Stock Screening with Range, Reversal, and RSI Filters

Summary

This note describes a stock selection rule combining daily price range, a reversal pattern called “反包” (roughly, an engulfing or counter-move signal), and a 14-period RSI below 65. The stated range condition is a high-to-low move greater than 1%; the three filters are combined, with candidate stocks then ranked by heat in the example workflow.

The article characterizes the screen as a simple technical approach and suggests adding other technical or fundamental measures, including MACD, or refining RSI thresholds. It provides indicator formula and Python examples, but no performance results or validation. The examples also leave important details unclear: the reversal condition is not consistently defined, and the Python snippet’s use of a negative shift may refer to future data. The method should therefore be treated as an illustrative screen rather than an established predictive strategy.

Key ideas

• The screen combines a price range above 1%, a reversal condition, and RSI below 65.
• The example uses a 14-period RSI and ranks selected stocks by heat.
• The article proposes adding further technical or fundamental filters to refine selection.
• It gives no backtest evidence, and the reversal definition and code timing require scrutiny.

Tags

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