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!
In this article I discuss a simple short-term mean reversion strategy based on the RSI indicator.
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.
2-period RSI Mean Reversion Strategy for swingtraders and daytraders
This ensures that the short term trend is up
This ensures us that the most recent day closed positive
RSI-indicator extremely overbought
Custom filter, current price is at least 9% above SMA10 price
Minimum Price filter
Current highest Price in 10 days