This screen shows stocks that have experienced a sharp increase in price in a short time and are therefore at least 9% away from their 10-day moving averages and where the RSI2-indicator is extremely overbought (>90). This makes these stocks ideal candidates to look for mean reversion SHORT setups on the assumption that the price will at least temporarily move back towards the average price. Remember that these candidates are merely watchlist setups. Confirmation is still needed, so be sure to read the article below that explains exactly what the strategy entails and how to apply it. Trade safe!
The RSI indicator (Relative Strength Index) is a widely used momentum indicator in technical analysis. It was developed by J. Welles Wilder Jr.
The 2 day RSI Trading Strategy, specifically aimed at active traders who hold positions for several days to at most several weeks.
Use the stock screener to find mean reversion trading ideas
2-period RSI Mean Reversion Strategy for swingtraders and daytraders
So, how to handle these extreme volatile stock market times? In this video I show you two ways. One intraday strategy and one swing trading strategy.
RSI-indicator extremely overbought
Custom filter, current price is at least 9% above SMA10 price
Minimal Liquidity
Current highest Price in 10 days
Minimum Price filter
Personal Preference
This ensures us that the most recent day closed positive
This ensures that the short term trend is up
Daily charts
Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.