A Chinese Equity Screen Using RSI, Market Capitalization, and the Five-Day Average

Summary

The proposed Chinese equity screen selects stocks with RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, and price above the five-day moving average. The accompanying Python example excludes stocks marked ST, calculates a five-day average from daily closes, checks the current price against that average, filters by RSI, then ranks qualifying names and displays up to ten. The stated rationale combines a short-term momentum or overbought measure, company size, and a near-term price trend filter.

The article warns that RSI can be affected by short-term volatility, a brief move above the moving average may be unreliable, and market capitalization alone does not establish company value. It also notes that the chosen size range excludes other stocks and suggests adding indicators or broader market context. No backtest methodology or measured results are given. The code’s market-data fields and RSI reference should be checked for correctness and availability before implementation.

Key ideas

• The screen combines RSI below 65, circulating capitalization from 5 billion to 10 billion yuan, and price above the five-day moving average.
• The example excludes ST-designated stocks and ranks qualifying stocks using an RSI-derived score.
• The moving-average condition is intended to favor stocks showing a short-term upward trend.
• The article cautions that short-term signals and market capitalization have limits and recommends considering broader evidence.
• No historical performance results or validation method are provided.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.