Stock Screening with Range, RSI, and Simultaneous Moving-Average Crossovers

Summary

This stock selection rule combines a daily range condition, an RSI ceiling, and three simultaneous moving-average crossovers. The range must exceed one percent, RSI must be below 65, and the 5-, 20-, and 60-period moving averages must cross upward in the specified pairwise combinations. The document presents these filters as a way to combine volatility, momentum, and technical confirmation when screening stocks.

It offers no backtest, market definition, or evidence that the conditions increase the probability of gains. The source cautions that technical indicators can lag or produce false signals, and that the screen omits company fundamentals such as earnings and valuation. It recommends adding fundamental analysis and empirically evaluating the selected indicators, but does not specify a validation process or demonstrate an optimized version. The stated criteria should therefore be treated as a screening example, not a proven trading system.

Key ideas

• The screen requires the daily high-low range to exceed one percent of the prior close.
• RSI must remain below 65.
• The 5-, 20-, and 60-period moving averages must form three upward crossovers together.
• The document provides no performance evidence and notes that technical indicators can lag or misclassify signals.
• It recommends considering company fundamentals and testing indicator choices empirically.

Tags

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