Technical & Price Action
RSI Overbought (Above 70) is a Technical & Price Action screen. It checks every NSE-listed stock against 1 condition computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
RSI above 70 is the most widely cited overbought signal in technical analysis, but its interpretation is genuinely two-sided — which makes it uniquely valuable as a screener rather than a mechanical signal. For momentum traders and trend followers, RSI above 70 in a strong uptrend confirms trend strength and can precede further continuation; the 'overbought' label is misleading in strong bull phases. For mean-reversion traders and contrarians, RSI above 70 signals near-term exhaustion and elevated probability of a pullback or reversal. This screen surfaces both populations and relies on the analyst or investor to apply context: a mid-cap stock with improving fundamentals and RSI at 72 is a different situation from a speculative micro-cap at 75 on no news. The market cap filter (>1000 Cr) removes micro-cap noise where RSI can be distorted by low liquidity and erratic trading.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Momentum Strength
Size and Liquidity Filter
Described in the philosophy; not a pass/fail condition in the current rule
Hard excludes
Ranked by RSI (14), highest first.
RSI (14-day)
14-period Relative Strength Index computed on daily closing prices using Wilder's smoothing method: RSI = 100 - (100 / (1 + RS)), where RS = average gain over 14 days / average loss over 14 days.
High is better
Market Cap (₹ Cr)
Market capitalization in Indian Rupees crore, computed as current_price * total_shares_outstanding, sourced from FinEdge company profile data.
High is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
Enter values to begin
How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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In the past data we checked, the stocks this screen picked differed from the ones it left out, by more than luck alone would explain; this screen has no intended direction, so we do not call that an edge. We looked back over 64 months. Each month we checked whether the stocks this screen picked did better, over the following month (21 trading days), than the stocks it didn't pick. We score that from -1 (the picks always did worse) to +1 (always did better); 0 means no pattern. This screen scored 0.0204. As a measurement, the score is very small, but clearly above zero. If the screen had no real edge, a score at least this far from zero would show up less than 1 in 1,000 by luck alone. That does not mean the screen is wrong; it still works for narrowing a list of stocks by your own rules.
This is a record of the past, not a prediction.
Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0