Stock Screening with RSI, Bid-Ask Volume Imbalance, and Weekly Trend

Summary

This note describes a stock screen combining three conditions: a 14-period RSI below 65, first-level bid volume greater than first-level ask volume, and a bullish weekly trend condition. Its indicator example represents the latter using moving-average relationships: the 5-period average above the 10-period average and price above the 5-period average. The document also provides sample formula and Python implementations, though the code’s use of shifted observations makes the timing of the intended weekly signal unclear.

The screen joins a bounded momentum reading with a bid-versus-ask volume imbalance and a trend filter. The article cautions that it does not assess company fundamentals and that a weekly bar condition can be sensitive to changing market expectations. It suggests adding financial and business analysis and using additional indicators to avoid relying on one signal. No historical results or validation are provided, and the examples do not establish how the filters would be traded or tested.

Key ideas

• The proposed screen requires RSI below 65, bid-side volume above ask-side volume, and a bullish trend condition.
• The trend proxy uses the 5-period and 10-period moving averages and price relative to the 5-period average.
• The volume comparison is intended to represent near-term buying and selling pressure.
• The note warns that the method ignores company fundamentals and may over-rely on recent price behavior.
• The sample code leaves uncertainty about weekly signal timing and provides no performance evidence.

Tags

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