Stock Screening with RSI, Bid-Ask Volume, and Price Range

Summary

The proposed stock screen combines RSI below 65 with first-level bid volume greater than first-level ask volume and an amplitude reading above 1. It is intended to identify shares with relatively active price movement and buying pressure, using short-term technical and quote-related conditions. The article supplies indicator references and an illustrative Python screening function, but reports no measured returns or backtest evidence.

The author notes that the rules focus on short-term price behavior and ignore company fundamentals and longer-term direction. The selection may be narrow and the chosen shares may be volatile, making it harder to manage exits. Suggested safeguards include adding a liquidity or market-capitalization filter, setting stop-loss and profit-taking levels, limiting position size, and diversifying across shares or industries. These are general recommendations; the document does not specify tested thresholds or a complete trading and execution method.

Key ideas

• The screen requires RSI below 65, bid-side first-level volume above ask-side volume, and amplitude above 1.
• The combination is presented as a way to identify short-term price activity and buying pressure.
• The article includes example screening logic but no performance results or backtest evidence.
• Its short-term inputs do not account for fundamentals or longer-term market direction.
• The author suggests exit rules, position limits, and diversification to manage the volatility of selected shares.

Tags

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