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About uptrend from Gord Greer's Scan Building Blocks

Green_DL
Green_DL ✭
in Scanning

The following are the extracts from Gord Greer's Scan Building Blocks.

The scan below finds securities where the RSI(14) values for the last 75 days are all above 40.

// Uptrend: RSI Above 40
and [min(75,RSI(14)) >= 40.0]

How would it run for the purpose of scanning uptrend stock??
How would it be the uptrend when RSI is above 40 over 75 days?

Comments

  • lmkwin
    lmkwin ✭✭
    There is a belief among some RSI technical analysts that a Bullish RSI range is 40-80 and a Bearish RSI range is 20-60.

    So in a bullish or uptrending security, the RSI will usually not go below 40.
    In a bearish or downtrending security, the RSI will usually not go above 60.

    So if the minimum level for the RSI in the past 75 days has been above 40, that would be a bullish uptrending range.

    That scan line should provide a decent list of uptrending securities.
  • lmkwin
    lmkwin ✭✭
    edited June 2023
    Tom Bowley in his May 14th blog article showed a graphic of the RSI ranges on the weekly SPX.



    https://stockcharts.com/articles/tradingplaces/2023/05/where-are-we-can-we-say-this-i-192.html
  • markd
    markd mod
    In addition, RSI is explained here:

    https://school.stockcharts.com/doku.php?id=technical_indicators:relative_strength_index_rsi

    Basically, RSI compares average gains to average losses over some number of bars. In an up trend, you expect the gains from bar to bar to be larger than the losses from bar to bar, so the RSI readings will be larger (mostly above 50). In a down trend, the reverse, so readings will be mostly below 50.
  • Sofearnot
    Sofearnot ✭
    If I'm not mistaken, the rsi was developed by the Late Great Wells Wilder and measures where stocks closed in relation to the range. Stocks trending higher will log mostly in the Upper-half of the range of the Day, Week, etc. So a stock like Amazon, for Example, that's had its rs above 50 for the last two or three months or so should, naturally, remain in a consistent Uptrend
  • Sofearnot
    Sofearnot ✭
    doesn't hurt, that it's a FAANG stock in an an era dominated by Mega Caps either
  • Green_DL
    Green_DL ✭
    Thanks markd , lmkwin and Sofearnot. thanks so much
  • Sofearnot
    Sofearnot ✭
    Np. Best of Luck.

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