Stock Screening with RSI, Buy-Sell Volume, and Limit-Up Exclusion

Summary

This screen selects stocks with RSI below 65, a ratio of external to internal trading volume above 1.3, and no limit-up move on the previous day. The document presents the conditions as a combination of a momentum indicator and trading-flow data, intended to find stocks with buying activity that have not just reached the daily price limit. Its sample code also applies data-history and liquidity-related checks, though these are not all stated in the main rule.

The author warns that technical indicators can fail, that policy or other market changes can alter price behavior, and that the screen may be less useful in range-bound markets. The article offers no backtest or measured outcomes to support its implied selection rationale. It suggests supplementing the conditions with moving averages, MACD, fundamental measures, and other factors, and adjusting the screen to market conditions.

Key ideas

• The screen requires RSI below 65 and an external-to-internal volume ratio above 1.3.
• It excludes stocks that reached the daily limit on the prior session.
• Technical and trading-flow signals may fail and do not capture a stock's full fundamentals.
• The article provides no performance evidence and recommends broader multi-factor analysis.

Tags

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