A Chinese Equity Screen Combining RSI, Market Capitalization, and Company Type
Summary
This stock screen combines a technical condition with size and company classification. It selects equities with RSI below a stated threshold and circulating market capitalization in a specified band, then considers enterprise type as an additional qualitative filter. The stated rationale is to combine recent price behavior with company characteristics, although the company-type criterion is not defined precisely.
The source discusses limitations: company information may be incomplete, and a single background classification can distract from more meaningful fundamentals. It suggests adding valuation measures such as price-to-earnings and price-to-book ratios, as well as further technical indicators. It includes example RSI calculation and selection logic, but reports no backtest, live results, or evidence that the screen outperforms. The described thresholds and factors are therefore screening hypotheses requiring careful specification and validation.
Key ideas
- The screen combines RSI below a threshold with a circulating market-capitalization range.
- Company type is included as a qualitative selection factor but is not operationally defined.
- The source warns that incomplete company information can reduce selection accuracy.
- It proposes adding valuation ratios and other technical measures for broader assessment.
- No performance evidence or validation results are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.