Stock Screening with RSI, Bid-Ask Volume, and a Lower Low

Summary

This post describes a stock screen combining a 14-period RSI below 65, bid-side volume greater than ask-side volume, and a current daily low below the previous day’s low. It provides example indicator logic and a Python implementation that applies those conditions to price and volume fields. The proposed rationale is to combine a momentum or price-state measure with order-side volume and a fresh low when selecting stocks.

The post warns that the screen omits company fundamentals and may be affected by market sentiment. It suggests adding other technical indicators, fundamental measures, or limits on industry and company size. It presents no backtest, performance statistics, execution assumptions, or evidence that the conditions predict gains. The code also depends on the input data containing compatible bid and ask volume fields, whose definitions and availability are not explained.

Key ideas

• The screen requires RSI below 65, bid volume above ask volume, and a daily low below the prior day’s low.
• The article illustrates the conditions with indicator syntax and a Python example.
• The author notes that the screen omits fundamentals and can be affected by nontechnical market forces.
• No backtest or performance evidence is provided.

Tags

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