Stock Screening with RSI, Order Book Volume, and Limit-Up History

Summary

This stock selection approach combines three filters: a 14-period RSI below 65, best bid volume greater than best ask volume, and at least two limit-up sessions in a 500-day lookback. The article frames these conditions as a way to find shares with prior strong price moves and a currently favorable balance of buying interest. It also sketches formula and Python implementations, though the examples express the historical price conditions in a way that may not correctly count limit-up events.

The article provides no backtest, return figures, or comparison with a benchmark. It warns that past limit-ups can reflect short-lived anomalies and may say little about a company’s longer-term prospects. It suggests adding fundamental and macroeconomic checks and considering market cycles, while acknowledging that sentiment and financial quality are distinct. The screen is therefore a speculative candidate filter, not a demonstrated predictive strategy; implementation details and the definition of limit-up conditions would need careful validation.

Key ideas

• The screen requires RSI below 65, bid volume above ask volume, and at least two limit-up sessions over 500 days.
• The article interprets these filters as combining price strength with current buying interest.
• Its sample code may not accurately count historical limit-up events and should be checked before use.
• The article warns that short-lived anomalies and past price moves do not establish durable prospects.
• It proposes adding fundamental, macroeconomic, and cycle analysis, but supplies no performance tests.

Tags

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