ChalniTry the demo

Reversals scan

RSI Oversold Bounce Screener

This scan finds stocks whose RSI (14) crossed back above 30 on the latest day. Below 30 is called oversold; the cross back above suggests the selling is easing.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: rsi crossed above 30

  1. RSI(14) crossed above 30

Find US stocks where RSI (14) crossed above 30 today.

Formula view
crosses_above(rsi(14), 30)
Example chart: Oversold bounce (RSI)Daily candles of a made-up sample stock with Lower panel: RSI (14), dotted lines at 30 and 70. The shaded day is the day the scan fired.
  • Lower panel: RSI (14), dotted lines at 30 and 70
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

RSI, the Relative Strength Index, was created by J. Welles Wilder in 1978. It compares the size of recent gains with recent losses on a scale from 0 to 100. Below 30 is commonly called oversold, and above 70 overbought.

Buying the moment RSI drops below 30 often means buying while the stock is still falling. Waiting for RSI to climb back above 30 gives a small sign that the fall has paused.

How traders use it

  • Add a trend filter (for example, close above the 200-day average) to avoid falling knives.
  • Use the recent low as your stop.
  • Swing traders often aim for a return to RSI 50 or to the 20-day average.

Watch out for

  • In strong downtrends, RSI can cross above 30 and then fall again.
  • Oversold does not mean cheap. It only means the price fell fast.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What does RSI below 30 mean?

The stock's recent losses were much bigger than its recent gains. Traders call it oversold, but a stock can stay oversold for a long time in a downtrend.

What RSI setting should I use?

14 periods is the standard. Shorter settings like 2 or 5 give more signals and are popular in short-term pullback strategies.

Related scans