Stock Screening with RSI, Candle Patterns, and Large-Order Flow

Summary

This stock screen combines an RSI threshold below 65 with recent candle conditions and positive large-order net volume. The stated idea is to find stocks with relatively subdued momentum while observing sustained buying pressure from large orders. The document includes example formulas and Python-style implementation notes for calculating RSI and net volume relative to total volume.

There is an important inconsistency in the pattern description: the title refers to three declining sessions, while the prose and examples describe three prior bullish candles followed by a bullish current candle. The net-flow condition is specified as above 0.05 for at least three consecutive days. The source warns that technical signals and flow estimates can be inaccurate or delayed, that fundamentals are omitted, and that the flow threshold may make the screen restrictive. It suggests adding indicators or fundamental measures and tuning the threshold, but presents no backtest, comparison, or evidence of returns.

Key ideas

• The screen combines an RSI reading below 65 with a candle-pattern condition and positive large-order net volume.
• Large-order net volume is expressed relative to total volume in the examples.
• The candle condition conflicts with the title’s description of three declining sessions.
• The document notes risks from delayed or inaccurate signals and omission of fundamentals.
• No performance evidence or backtest results are provided.

Tags

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