Stock Screening with RSI, Bid-Ask Volume, and Dividend Ratio
Summary
This stock screen combines three conditions: a 14-period RSI below 65, first-level bid volume greater than ask volume, and a dividend ratio above 25% based on 2019 data. The article presents these filters as a way to combine a technical indicator, order-book activity, and dividend information when looking for stocks that may have near-term upside. It includes formula and Python examples of the selection logic, but reports no backtest, performance figures, or evidence that the filters predict returns.
The article cautions that the screen emphasizes short-term signals and a historical dividend measure, leaving other fundamentals and future company performance unaddressed. It suggests adding measures such as industry, business condition, growth, cash flow, and financial risk, and using a multi-period dividend average to reduce fluctuations. The proposed refinements are recommendations rather than tested improvements. The strategy also depends on data definitions and availability for bid and ask volume and the stated dividend ratio.
Key ideas
- The screen requires RSI below 65, bid volume above ask volume, and a 2019 dividend ratio above 25%.\nIt combines technical, order-book, and dividend criteria to identify possible near-term strength.\nThe article provides implementation examples but no measured performance evidence.\nHistorical dividends and short-term signals may overlook future fundamentals and longer-term risks.\nSuggested additions include company financial measures and a smoothed dividend history.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.