Stock Screening with RSI, Large-Order Flow, and Prior-Day Lows

Summary

This stock screen combines three conditions: a 14-period RSI below 65, the product of percentage price change and a measure of very large-order net inflow above a stated threshold, and a close above the previous day’s low. The article presents the combination as a way to blend a technical indicator, a capital-flow measure, and a basic price condition when selecting stocks. Its sample code also applies turnover and valuation filters and limits the returned list to 50 names.

The explanation is internally unclear about the interpretation of RSI below 65, describing it as weak demand while also treating the full screen as a way to find relatively strong recent performers. It offers no backtest, benchmark, or evidence that the thresholds improve results. The author notes that indicators may lag or fail to capture price trends and suggests testing additional indicators or adjusting thresholds and list size. The screen’s effectiveness and implementation depend on data definitions and timely inputs.

Key ideas

• The screen combines RSI below 65, price change multiplied by large-order net inflow, and a close above the prior day’s low.
• The sample implementation adds turnover and positive valuation filters and returns up to 50 stocks.
• The article frames the screen as a combination of technical and capital-flow signals.
• It warns that indicators can lag and may not fully represent price trends.
• No backtest or performance evidence is provided for the proposed conditions.

Tags

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