Stock Screening with RSI, Consecutive Candles, and Afternoon Flow

Summary

The document proposes a stock screen combining a 14-period RSI below 65, three consecutive declining sessions, and positive afternoon large-order net inflow. It frames the filters as a blend of technical conditions and money-flow information, intended to avoid selecting stocks after a short, sharp rise. It includes formula and Python references for calculating the RSI and a volume-weighted price-change measure.

There is an inconsistency in the specification: the text calls for three bearish candles, but the supplied conditions compare prior closes above prior opens, which indicate bullish candles. The stated flow calculation also uses volume times the close-to-open change and a five-period moving average; it does not show a distinct afternoon-only measurement or identify large orders separately. No backtest or outcome data is provided. The author cautions that flows and sentiment are hard to predict and that technical filters may overlook company fundamentals, suggesting broader price-volume and financial measures as possible additions.

Key ideas

• The proposed screen combines RSI below 65, a three-candle condition, and positive flow information.
• The written description asks for three bearish candles, while the provided conditions appear to check bullish candles.
• The flow proxy uses volume multiplied by the close-to-open price change and a five-period average.
• The document provides no performance results and notes that fundamentals and uncertain flows are limitations.

Tags

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