A Chinese Stock Screen Combining RSI, Seven Declines, and a Weekly Trend Cross

Summary

This Chinese-language article proposes screening mainland Chinese stocks with RSI below 65, seven consecutive declining sessions, and a weekly close crossing above the 30-week moving average. It also discusses adding fundamental filters and gives an implementation example that applies market capitalization and exchange constraints. The stated rationale is to combine a potentially less overheated RSI reading and recent weakness with a longer-term trend change.

The article warns that technical filters alone can overlook macroeconomic, sector, and company risks, and suggests incorporating indicators and quarterly results. Its example is not a reliable specification of the stated screen: the seven-session condition checks whether every close is at or below the open, which is not the same as seven declining closes, and the moving-average calculation uses daily observations. No backtest results, benchmark, transaction costs, or risk-adjusted performance are supplied, so the setup should be treated as a screening hypothesis rather than a validated strategy.

Key ideas

• The proposed screen combines RSI below 65, seven declining sessions, and a weekly cross above the 30-week average.
• The article recommends considering company fundamentals and broader market conditions alongside technical signals.
• Its code example adds market capitalization and exchange filters.
• The example’s candle condition does not exactly implement seven consecutive declining closes.
• No performance results or risk-adjusted evaluation are provided.

Tags

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