Stock Screening with RSI, Seven Down Days, and an Arc Pattern

Summary

This stock screen combines three technical conditions: RSI below 65, seven consecutive down days, and a price chart identified as having an arc shape. The document presents the conditions as a way to identify shares whose RSI is not especially elevated while recent price action and chart form meet the specified pattern criteria. Its code reference describes using a 14-period RSI and examining recent price history, but leaves the arc-detection function unspecified.

The author cautions that a screen based heavily on technical signals can be affected by sudden market events and unreliable data. Arc patterns can be subjective and difficult to detect consistently. The text suggests adding momentum or volume measures and using charting or moving-average tools to make pattern identification more dependable. It provides no backtest or evidence of trading performance, and the incomplete pattern logic limits reproducibility.

Key ideas

• The screen requires RSI below 65 and seven consecutive declining sessions.
• A chart must also meet an arc-shaped pattern condition.
• The example uses a 14-period RSI, while the arc-identification method is left undefined.
• The document warns that pattern subjectivity, data quality, and sudden market events can affect results.
• It recommends considering volume, momentum, and additional chart tools.

Tags

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