Stock Screening with RSI, Three Down Candles, and the 10-Day Average

Summary

This stock screen combines three technical conditions: a 14-period RSI below 65, three consecutive sessions in which the close is below the open, and an opening price within five percent of the 10-day moving average. The article presents the rules as a way to find stocks showing short-term weakness while opening near a recent price trend. It includes example formulas and Python-style logic for applying the filters to market data.

The article offers no performance results, sample, or evidence that the conditions predict a rebound or profitable entry. Its code examples also reuse a variable for different conditions, which can obscure how the three-candle filter is combined with the moving-average test; readers should verify an implementation against the stated rules. The author notes that technical indicators can lag and that market and industry trends matter. Suggested refinements include testing multiple time horizons and adding fundamental or sentiment measures, but no validation procedure or risk controls are specified.

Key ideas

• The screen requires a 14-period RSI below 65.
• It looks for three consecutive sessions with closes below their opens.
• The opening price must lie within five percent of the 10-day moving average.
• The article gives example implementations but provides no backtest results.
• It cautions that technical indicators can lag and suggests considering broader market and industry conditions.

Tags

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