Stock Screening with RSI, Order-Book Volume, and Company Type
Summary
This proposed stock screen combines three filters: a 14-period RSI below 65, greater displayed buy-side than sell-side volume, and a specified company type. The document presents RSI as a price-condition filter and the imbalance between the best bid and ask volumes as a sign of optimistic market sentiment. It also frames company classification as a way to focus on a particular industry or type of business.
The article provides illustrative screening logic and sample code, but no backtest, return data, or evidence that the combination has predictive value. It warns that favorable order-book sentiment can coexist with weak fundamentals or a continuing price decline, and that a narrow company-type choice can bias selection. Suggested improvements include evaluating growth, market share, competition, financial measures, and supplemental valuation or earnings metrics. The exact company category is left unspecified, so the screen is not fully reproducible without that choice and a defined data source.
Key ideas
- The proposed screen requires RSI below 65, higher best-bid than best-ask volume, and a selected company type.
- The article interprets bid-side volume dominance as optimistic sentiment, but does not validate that interpretation empirically.
- It cautions that the filters can select declining stocks with poor fundamentals.
- It recommends adding broader financial, growth, competitive, and valuation analysis.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.