Stock Screening with RSI, Order Book Volume, and Prior Lows

Summary

This stock screening rule combines three conditions: a 14 period RSI below 65, buy side volume greater than sell side volume, and a closing price above a prior low. The accompanying explanation treats RSI as a measure of price condition, the volume comparison as a sign of buying interest, and the close relative to the low as evidence of upward pressure. The rule is intended to identify candidate stocks; it does not specify portfolio construction, entry timing, or position sizing.

The document warns that the screen omits company fundamentals and broader market conditions, and may not respond well to short term price swings. It suggests adding fundamental, market environment, and volatility filters. There are no backtest or live trading results to support the claimed potential. There is also an implementation mismatch: the prose refers to yesterday’s low, while the code examples compare the close with a prior rolling 30 period low. That distinction should be resolved before reproducing the screen.

Key ideas

• The screen requires RSI below 65, buy volume above sell volume, and a close above a prior low.
• The rule combines a technical indicator with a buy versus sell volume comparison.
• The article identifies missing fundamental and broad market filters as limitations.
• The code compares against a prior rolling 30 period low, unlike the prose description of yesterday’s low.
• No performance evidence is provided for the screening rule.

Tags

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