Stock Screening with RSI, Money Flow, and Ten-Day Returns

Summary

This post proposes screening stocks with a relative strength index below 65, positive money-flow strength ranked from high to low, and a ten-day return above zero but below 35%. It identifies RSI as a momentum measure and Chaikin Money Flow as a proxy for buying pressure, and includes example indicator formulas and Python-style screening logic. The post also suggests checking company valuation and industry exposure to make the screen more complete.

The screen combines recent price performance with technical and flow measures, but the post offers no backtest or evidence that these conditions predict future returns. It acknowledges that omitting company fundamentals and applying restrictive filters may leave few candidates and reduce diversification. The sample code narrows the universe to stocks with codes beginning with 60, uses a specific threshold for money flow, and contains implementation choices that may not match the stated ranking rule. Data availability and indicator calculations would need to be checked before using the example operationally.

Key ideas

• The proposed screen requires RSI below 65 and a positive ten-day return below 35%.
• Money-flow strength is used as a measure of buying pressure and is intended to rank candidates.
• The post recommends adding valuation and industry considerations to the technical screen.
• Restrictive conditions may produce few stocks and weaken diversification.
• The example code is illustrative and does not establish strategy performance.

Tags

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