Stock Screening with Turnover, Price Near the 10-Day Average, and RSI

Summary

This stock-screening rule combines a turnover range of 3% to 12%, an opening price within 5% of the 10-day moving average, and a 14-period RSI below 65. The article describes turnover and price location as technical filters and treats the RSI threshold as a way to avoid strongly overbought conditions. It gives formula and data-frame examples for applying the conditions.

The article provides no backtest, performance statistics, or evidence that the rules predict returns. It cautions that the screen relies heavily on technical indicators and does not assess company fundamentals or longer-term value. It suggests adding financial, industry, or other market data, such as volume, for broader analysis, but does not test those additions. The criteria form a basic selection screen rather than a complete trading system.

Key ideas

• The screen selects stocks with turnover from 3% to 12%.
• It requires the opening price to be within 5% of the 10-day moving average.
• It applies a 14-period RSI threshold below 65.
• The document supplies formula examples but no performance evidence.
• It identifies reliance on technical signals and missing fundamental analysis as limitations.

Tags

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