Stock Screening with RSI, Order Flow, and Rising Lows

Summary

This stock selection idea combines a relative strength index below 65, the product of daily price change and net super-large-order volume being positive, and a price pattern described as rising from a local bottom. The rationale blends technical conditions with a proxy for trading interest and a possible stabilization signal. The accompanying example also excludes special-treatment stocks and estimates the rising-bottom condition using the latest close relative to the minimum close over a rolling window.

The document gives no backtest, returns, or evidence that the combination earns excess returns. It warns that chart patterns can fail as market conditions change and that the screen omits company fundamentals and industry context. It suggests adding other indicators, fundamental measures, or quantitative weighting, but does not specify or validate those extensions. The order-flow definition and implementation details are also not fully consistent: the prose describes a flow threshold while the example uses a signed product condition.

Key ideas

• The screen requires RSI below 65, a positive product of price change and net super-large-order volume, and a rising-bottom pattern.
• The rationale combines a technical indicator, an order-flow proxy, and a price stabilization signal.
• The example measures the rising-bottom condition using recent closes relative to a rolling minimum.
• The method omits fundamental and industry information and provides no performance evaluation.
• The written order-flow description and sample filter do not define the condition in exactly the same way.

Tags

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