Stock Screening with RSI, Three Candle Days, and a 30-Week Moving Average

Summary

The post describes a stock screen combining a 14-period RSI below 65, three consecutive candle conditions, and a weekly price crossover involving a 30-week moving average. It presents the setup as a way to find stocks that may rebound after weakness, and includes sample formulas and Python-style screening logic. It also suggests adding company fundamentals and other indicators, or using a longer holding horizon, to refine the screen.

The evidence is a description of the rules and implementation examples; no backtest results, performance figures, or comparison with other screens are provided. The explanation has material ambiguities: it calls the three candles bearish, while the sample conditions appear to test closes above opens, and its crossover expressions may not match the stated weekly price crossing above the average. The RSI threshold alone does not establish an oversold condition. The post also cautions that technical indicators can lag and that the method may overlook fundamentals, so the rules need clarification and empirical testing before use.

Key ideas

• The proposed screen combines RSI below 65, three consecutive candle conditions, and a 30-week moving-average crossover.
• The post frames the setup as a way to identify potential rebounds after price weakness.
• The prose and sample candle conditions disagree about whether the candles are bearish.
• The crossover examples may not implement the stated weekly price crossing above its average.
• The post recommends considering fundamentals and recognizes indicator lag as a limitation.

Tags

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