Stock Screening with RSI, Large-Order Flow, and Moving-Average Trend
Summary
The document describes an equities screening rule that combines RSI below 65, the product of price change and net large-order flow, and a 20-day moving average above the 120-day moving average. It presents the combination as a way to select stocks using both technical conditions and a measure associated with money flow. The RSI threshold is intended to avoid stocks with elevated readings, while the moving-average comparison favors an upward trend across short and longer horizons.
The material explains the rationale for the indicators and includes a reference to their calculation conventions, along with illustrative screening code. It reports no backtest, measured returns, or comparison against a baseline. The author cautions that technical signals can overlook fundamentals and that speculative buying may influence selected stocks. Suggested extensions include adding indicators or fundamental variables, and managing the resulting portfolio with diversification and allocation decisions; these ideas are not evaluated in the document.
Key ideas
- The screen requires RSI below 65 and a 20-day average above the 120-day average.
- It also combines price change with net large-order flow as a selection condition.
- The strategy is presented as a joint technical and capital-flow screen, without performance evidence.
- Fundamental analysis and portfolio diversification are proposed as ways to address limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.