Stock Screening with RSI, Order-Book Volume, and Company Size

Summary

This document outlines a stock screen using three conditions: RSI below 65, displayed buy-side volume greater than sell-side volume, and company size above 200 million. It presents the combination as a short-term selection approach, interpreting RSI as a price-momentum measure and the volume comparison as a rough sign of buying interest. Example indicator and Python snippets show how the conditions could be combined, though field names and volume definitions depend on the data source.

The article offers no backtest, sample, or evidence of returns. It acknowledges that a size threshold alone says little about financial health, while RSI and order-book or trade-volume readings capture market conditions rather than business quality. It recommends adding financial and industry measures and tailoring the screen to the intended trading style. The document does not specify the company-size metric in detail, and the order-book volume condition may not have the same meaning across platforms or timestamps.

Key ideas

• The screen requires RSI below 65, buy-side volume above sell-side volume, and company size above 200 million.
• The article frames the conditions as a short-term stock selection method.
• It provides illustrative formulas and Python-style filtering logic.
• The document reports no backtest or measured performance.
• It cautions that the criteria do not establish sound fundamentals or fully capture market risk.

Tags

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