Using Moving-Average Trend, RSI, and Popularity in Stock Screening

Summary

This document presents an equity-selection idea that combines an upward-moving 30-day average with an RSI below 65, then ranks candidates by stock popularity. It frames the rising average as a sign of favorable recent direction and the RSI ceiling as a way to avoid selecting stocks whose momentum reading is already too high. Its sample implementation calculates a 14-period RSI and checks whether the latest 30-day moving average exceeds its prior value.

The written rules and code are not fully consistent: the code sorts candidates by RSI rather than popularity, adds a circulating-market-value range absent from the stated screen, and uses a different price condition from the moving-average description. The document also warns that technical filters omit company fundamentals and cannot prevent sharp declines after market shifts or events. It suggests adding business and industry analysis, but provides no backtest or performance evidence, so the selection logic should be treated as an unvalidated screening example.

Key ideas

• The stated screen combines an RSI ceiling with a rising 30-day moving average.
• Popularity is intended to rank qualifying stocks from highest to lowest.
• The code instead sorts by RSI and adds a market-value condition not present in the written rules.
• The document notes that technical filters omit fundamental and long-term business factors.
• No backtest or evidence of returns is provided.

Tags

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