Mean Reversion Screens - RSI Indicator
This screen shows stocks that have experienced a sharp decrease 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 oversold (<10). This makes these stocks ideal candidates to look for mean reversion LONG 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: What Is It And How To Use It?
The Relative Strength Indicator (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and helps traders identify overbought or oversold conditions in a market.
Mean Reversion Stock Screener
Use the stock screener to find mean reversion trading ideas
How To Use RSI For Swing Trading? A Checklist
How to use RSI for swing trading? A ready-to-use checklist to make proper use of this indicator.
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.
Related Videos
Mean Reversion Strategy for Swingtrading and Daytrading
2-period RSI Mean Reversion Strategy for swingtraders and daytraders
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.
Average Volume: 50 SMA > 300K
Minimal Liquidity
(close<=(sma10*0.91))
Custom filter, current price is at least 9% below SMA10 price
Exchange: US Only
Personal Preference
Price: Above 5
Minimum Price filter
RSI: RSI(2) Below 10
RSI-indicator extremely oversold
Signal: New 10 day Low Today
Current lowest Price in 10 days
sma10: SMA(10) Below SMA(20)
This ensures that the short term trend is down
Today<=0%
This ensures that the most recent day closed negative
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.