A Chinese Stock Screen Using RSI, Beverage and Alcohol Trade, and Turnover

Summary

This proposed China A-share screen combines three conditions: a 12-period RSI below 65, membership in the beverage and alcohol import-export industry, and previous-day actual turnover between 3% and 28%. The article presents turnover as a measure of market participation and uses the bounded range to avoid extreme readings. It gives example formula and Python-style logic, but does not provide backtest results or evidence of profitability.

The author notes that turnover can misrepresent sentiment, a single industry filter excludes other opportunities, and previous-day data can lag current conditions. Suggested extensions include adding industry, capital-flow, and fundamental measures, refining turnover with other indicators, and analyzing announcements or news. These are proposals rather than validated improvements. The screen is a stock-selection heuristic; the document does not specify entry, exit, sizing, or portfolio rules.

Key ideas

• The screen selects stocks with RSI below 65 from the beverage and alcohol import-export industry.
• It also requires previous-day actual turnover to fall between 3% and 28%.
• The article treats turnover as a rough gauge of investor interest, not a complete measure of sentiment.
• Industry concentration and lagged turnover readings are identified as limitations.
• The proposed additions, including fundamentals and news analysis, are not validated with reported performance.

Tags

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