Stock Screening with RSI, Order Book Volume, and a Long-Term Moving Average

Summary

This stock screen combines a 14-period RSI below 65, bid-side volume greater than ask-side volume, and a prior close above a long-term moving average. The post presents these conditions as a way to find relatively strong equities, then sketches equivalent indicator and Python implementations. It offers no backtest, performance results, or evidence that the screen predicts returns.

The description is internally inconsistent: the heading and initial explanation refer to a 250-day average, while the final stated selection logic switches to a 20-day average. The sample Python and formula use 250 days. The post also acknowledges that technical filters omit company fundamentals, may react poorly to short-term moves, and can produce false selections. Readers would need to resolve the moving-average discrepancy and test the rules, including data timing and order book volume definitions, before relying on them.

Key ideas

• The screen combines RSI below 65 with bid-side volume exceeding ask-side volume.
• It requires the previous close to exceed a moving average, but the document conflicts on whether that average is 250 or 20 days.
• The post describes the setup as a technical way to identify relatively strong stocks but provides no performance evidence.
• The author notes that technical indicators omit fundamental information and can generate mistaken selections.

Tags

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