Stock Screening with RSI, Three Down Sessions, and Positive Money Flow

Summary

This stock-selection rule combines a 14-period RSI below 65, three consecutive declining sessions, and positive Chaikin Money Flow over 14 periods. The proposed interpretation is that recent weakness may leave room for a rebound while positive money flow suggests buying pressure. The example code filters a stock dataset using these conditions and then ranks qualifying names by percentage change. It also suggests considering broader market conditions and fundamental information alongside the indicators.

The article supplies a screening recipe, not evidence that the screen predicts gains: it reports no backtest, benchmark, or risk-adjusted results. Its explanation calls the RSI condition oversold, though a threshold below 65 alone does not establish that interpretation. The written description says three consecutive down sessions, while the displayed conditions compare prior closes with prior opens, which may not precisely implement that rule. It also acknowledges that money-flow data can lag and that indicator-only selection can overlook market and company fundamentals.

Key ideas

• The screen requires RSI below 65, three declining sessions, and positive Chaikin Money Flow.
• The indicators are intended to combine price weakness with a positive money-flow reading.
• The example ranks qualifying stocks by percentage change after applying the filter.
• The article recommends considering market conditions and fundamentals as additional context.
• No performance study is provided, and the code’s candle conditions may differ from the stated consecutive-decline rule.

Tags

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