Stock Screening with RSI, Order Book Volume, and the Five-Day Average

Summary

This stock selection rule combines three conditions: a 14-period RSI below 65, first-level buy volume greater than first-level sell volume, and the closing price above its five-day moving average. The post presents these as signs of moderate momentum, buying interest, and a short-term upward price position, respectively. It includes formula and Python examples for applying the conditions to stock data.

The article gives a rationale for the screen but no backtest results or evidence that it produces positive returns. It cautions that the approach omits company fundamentals, may respond slowly to short-term market changes, and is sensitive to the moving-average period. It suggests adding fundamental analysis and considering other average periods, but does not quantify the effect of those changes. The listed conditions identify candidates; the document does not specify a full trading plan for entries, exits, or risk management.

Key ideas

• The screen requires a 14-period RSI below 65, first-level buy volume above sell volume, and a close above the five-day average.
• The post interprets these conditions as signals of buying interest and short-term strength.
• It provides formula and Python examples for screening stock data.
• The approach omits fundamental analysis and supplies no reported performance test.
• The author notes that short-term responsiveness and results may depend on the chosen average period.

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