Understanding the RSI Crossed Above 30 scan

This scan looks for the specific moment an oversold  stock starts to recover: RSI(14) closing back above 30 on the latest completed daily candle after being below it on the previous one. Unlike a static 'RSI below 30' filter, a cross event is directional — it captures the turn, not the stretch.

The logic behind the signal is straightforward mean-reversion mechanics. When RSI leaves the oversold zone, the average of recent gains has finally started outpacing the average of recent losses, which is often the first measurable footprint of buyers stepping back in. Classic technical analysis literature treats the 30-line recross as the actual oversold 'signal', with the time spent below 30 merely the setup.

The signal works best when it lines up with a meaningful price location — a prior swing low, a rising long-term moving average or a gap-fill zone — and when the recovery candle shows real participation (above-average volume, strong close). Recrosses that happen mid-air in a freefall chart carry far less information and frequently fail within a couple of sessions.

How to use this scan

• Prioritise matches sitting on visible support or above a rising 200 EMA.
• Check the recovery candle itself — a strong close on above-average volume adds conviction.
• Place initial stops under the recent swing low that formed while RSI was oversold.
• Skip  stocks with earnings or major events due within the next couple of sessions.
• Track how each match behaves for 2–3 days; failed recrosses that dip back under 30 are an exit signal.