Mean reversion screens (short) - RSI Indicator

Mean reversion screens (short) - RSI Indicator Image
RUN IN STOCK SCREENER
(10)

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!


Related Articles
Article Image

2 Day RSI Trading Strategy

The 2 day RSI Trading Strategy, specifically aimed at active traders who hold positions for several days to at most several weeks.

Article Image

Mean Reversion Stock Screener

Use the stock screener to find mean reversion trading ideas

Article Image

The RSI Indicator: What Is It And How To Use It?

The RSI indicator (Relative Strength Index) is a widely used momentum indicator in technical analysis. It was developed by J. Welles Wilder Jr.

Related Videos

Video Image

Mean Reversion Strategy for Swingtrading and Daytrading

2-period RSI Mean Reversion Strategy for swingtraders and daytraders

Video Image

How to handle extreme stock price movements? (one intraday and one swing trade strategy)

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.

Stock Screener Settings

Price: Above 10

Minimum Price filter

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

Exchange: US Only

Personal Preference

Average Volume: 50 SMA > 300K

Minimal Liquidity

sma10: SMA(10) Above SMA(20)

This ensures that the short term trend is up

Signal: New 10 day High Today

Current highest Price in 10 days

RUN
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.