A Chinese Equity Screen Using RSI, Seven Down Days, and Limit-Up Patterns

Summary

The document proposes a Chinese stock screen combining RSI below 65, seven consecutive sessions in which the close is no higher than the open, exclusion of special-treatment stocks, and selection before 10 a.m. It also describes a five-session limit-up pattern and a prior-day volume condition, then adds a market-capitalization range of 5 billion to 20 billion yuan. The screen is framed as a way to find stocks with changing sentiment or attention from market participants.

The post offers indicator definitions and sample implementation ideas, but it does not provide backtest results or evidence of predictive value. It cautions that the rules emphasize technical conditions and market expectations while omitting fundamentals and broader market context. It suggests incorporating sector trends, valuation, market structure, or capital flows, and adjusting factors to the market and stock characteristics. The supplied descriptions and code are not fully consistent in how they express the limit-up and volume rules, so the conditions would need careful verification before research or use.

Key ideas

• The proposed screen combines an RSI threshold with seven consecutive down sessions and excludes special-treatment stocks.
• It adds a five-session limit-up pattern, a volume condition, an early selection time, and a specified market-cap range.
• The author suggests the rules aim to identify shifts in sentiment and attention to active stocks.
• No performance study is supplied, and the post warns that technical filters omit fundamentals and broader conditions.
• Some written criteria and sample code differ, so the rule definitions need verification.

Tags

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