Stock Screening with RSI, Seven Down Days, and Listing Age

Summary

This document describes a stock-selection rule based on three conditions: RSI below 65, seven consecutive bearish daily candles, and a listing age greater than a chosen number of years. It presents the screen as a way to identify established companies after a sustained decline, then suggests adding fundamental, industry, and longer-horizon market information to assess candidates. A code example sketches calculations for RSI and the seven-day candle condition, plus a listing-age filter.

The rationale and implementation are not fully aligned: seven down days indicate recent weakness, while the text characterizes the screen as seeking strong stocks with upside potential. The document itself notes that the rule omits fundamentals and that listing age does not measure company quality. It recommends broader analysis and periodic backtesting, but supplies no performance evidence. The example also leaves important choices unclear, including the RSI period, the meaning of “greater than N years,” data handling, and how selected stocks would be entered or managed.

Key ideas

• The screen requires RSI below 65, seven consecutive daily candles closing below their opens, and a minimum listing age.
• The proposed interpretation is that listing age favors more established companies, though age alone does not establish quality.
• The document suggests adding fundamental, industry, and longer-term market factors.
• It acknowledges that technical conditions and listing history can miss important company information.
• No backtest results are given, and the example leaves several implementation details unspecified.

Tags

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