Mean reversion screen (short) using the RSI indicator

Mean reversion screen (short) using the RSI indicator Image
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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!


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Stock Screener Settings

sma10: SMA(10) Above SMA(20)

This ensures that the short term trend is up

Today>=0%

This ensures us that the most recent day closed positive

RSI: RSI(2) Above 90

RSI-indicator extremely overbought

(close>=(sma10*1.09))

Custom filter, current price is at least 9% above SMA10 price

Price: Above 10

Minimum Price filter

Exchange: US Only

Personal Preference

Average Volume: 50 SMA > 300K

Minimal Liquidity

Signal: New 10 day High Today

Current highest Price in 10 days

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Chart Settings

Daily charts

Regional Run

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.