Stock Screening with RSI, Bid–Ask Size Imbalance, and Control Position

Summary

This proposed stock screen selects instruments with an RSI below 65, first-level bid volume greater than first-level ask volume, and a control-position reading above 21%. The article presents RSI as a price-momentum measure and the order-book size comparison as a sign of current trading interest; the control-position measure is intended to capture market positioning or sentiment. It includes formula and Python examples using a 14-period RSI and those three filters.

The post warns that the screen ignores company performance and financial condition, that the control-position measure may be distorted, and that sector or broader economic effects are not considered. It recommends combining fundamental analysis with other flow or sentiment measures rather than relying on the control-position reading alone. The article supplies no backtest, sample definition, execution rules, or evidence that the thresholds produce an advantage. Its criteria should therefore be treated as a screening proposal, not a demonstrated strategy.

Key ideas

• The screen requires RSI below 65, first-level bid volume above first-level ask volume, and control position above 21%.
• The article uses a 14-period RSI in its implementation example.
• The post interprets the filters as a combination of price momentum, order-book interest, and market positioning.
• It cautions that company fundamentals, sector effects, and broader economic conditions are omitted.
• No performance evidence is given, and the article advises combining the positioning measure with other information.

Tags

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