Stock Screening with RSI, Bid–Ask Volume, and Daily Price Change
Summary
This short-term stock screen combines a 14-period RSI below 65 with greater displayed buy-side than sell-side volume and a daily price change between -5% and 2.6%. It aims to find stocks that are not extremely overbought, show stronger buying interest at the top of the book, and remain within a modest price range. The document provides example formulas and Python-style pseudocode for applying these filters; it does not present historical testing or performance evidence.
The author warns that the screen relies on a narrow set of technical and sentiment-related inputs and does not account for company fundamentals or broader market conditions. The proposed use is short-term, with no basis given for long-term investment decisions. The article suggests adding financial and market-context measures to broaden the selection process. The stated thresholds and buy-versus-sell volume comparison are screening rules, not evidence that selected stocks will rise; the document does not specify execution assumptions or evaluate the strategy’s risk-adjusted returns.
Key ideas
- The screen requires a 14-period RSI below 65.
- Displayed buy-side volume must exceed sell-side volume.
- The daily price change must fall between -5% and 2.6%.
- The article frames the method as a short-term screen and notes that it omits company fundamentals and broad market conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.