A Chinese Stock Screen Combining RSI, Daily Gains, and a Morning-Star Pattern

Summary

This Chinese equities screening example combines three filters: RSI below 65, a daily gain above 1%, and a candlestick formation the post calls the Kutong morning star. Its accompanying descriptions frame the RSI threshold as a rebound condition and the daily gain as evidence of momentum, while using the pattern to seek short-term reversals. The example also sorts candidates by a stock-heat measure.

The document gives SQL-like and Python-style examples that inspect recent OHLC bars and apply the filters, but it provides no performance results or validation of the claimed signals. Its pattern rules are specific to the supplied implementation and may not match standard morning-star definitions. The author notes that chart patterns can fail and suggests adding other indicators, fundamental screens, and risk controls such as exit rules. The strategy is therefore a screening template, not evidence that the signals produce excess returns.

Key ideas

• The screen selects stocks with RSI below 65 and a daily rise greater than 1%.\nIt adds a three-bar candlestick condition described as a Kutong morning-star pattern.\nThe example ranks qualifying stocks by a heat measure.\nThe document offers implementation sketches but no backtest evidence.\nPattern reliability is uncertain, so risk controls and further validation are needed.

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