Stock Screening with RSI, Three Candles, and Bid-Ask Volume
Summary
The proposed stock screen combines an RSI threshold below 65, a three-candle pattern described as consecutive down sessions, and first-level bid volume greater than ask volume. The text presents these as technical and order-book filters intended to identify candidate stocks. It also suggests ranking qualifying names by trading volume and mentions a 14-period RSI calculation.
The article warns that the screen omits fundamentals, industry conditions, and policy factors, and that displayed bid and ask volumes can be affected by market fluctuations or misread. It suggests adding indicators and broader company and market information, while emphasizing risk control. The example formulas are inconsistent: one expression used for the three-candle condition compares prior closes above opens, while the prose describes down sessions; another filter refers to an unspecified additional indicator. No backtest results, execution assumptions, or evidence of returns are supplied, so the screen remains an incomplete idea rather than a validated strategy.
Key ideas
- The screen combines RSI below 65, a three-candle condition, and bid volume exceeding ask volume.
- The text describes the candle pattern as three consecutive down sessions and gives a 14-period RSI reference.
- Qualifying stocks may be ranked by trading volume.
- The screen omits fundamentals, industry, and policy information, and order-book quantities can be misleading.
- The example conditions conflict about candle direction and include an unspecified indicator threshold.
- No performance evidence or execution analysis is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.