Stock Screening with RSI, Seven Down Days, and Auction Buying

Summary

The proposed equity screen selects stocks with an RSI below 65, seven consecutive sessions in which the close is no higher than the open, and strong combined large and extra-large buy volume during the opening auction. It combines a momentum indicator, a run of weak daily candles, and an order-flow condition intended to identify buying interest. The article describes this as a possible short- to medium-term selection approach and suggests adding broader market conditions, financial measures, and other technical indicators.

The document provides formulas and a Python example as implementation references, but it does not show a backtest, performance record, or validation of the selection rule. Its code’s data fields and calculations may not faithfully match every stated condition, and auction-volume data can be inaccurate or platform-dependent. It also acknowledges that company finances and overall market direction are not fully accounted for, so the screen should be treated as a hypothesis requiring independent testing rather than established evidence of an edge.

Key ideas

• The screen combines RSI below 65, seven weak daily candles, and opening-auction large-order buying.
• The stated buying-volume threshold is intended to represent demand during the auction.
• The article suggests adding market trend, financial information, and other indicators to refine selection.
• The provided code is an implementation reference and may not exactly reproduce every stated condition.
• No backtest or performance evidence is presented, and data quality and market risk remain concerns.

Tags

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