A Chinese Stock Screen Using RSI, Daily Gains, and Limit-Up Exclusion
Summary
This Chinese A-share screening recipe selects main-board stocks with RSI below 65 and a daily gain above 1%, while excluding stocks that hit the price limit on the previous day. The stated rationale is to favor stocks showing some current strength without carrying the prior session's limit-up condition. It presents the screen as a simple combination of technical, market-activity, and board filters.
The document discusses risks including market reversals, changes in company performance or market themes, and the possibility that recent strong moves lead to volatility. It suggests adding indicators such as MACD or KDJ and considering market capitalization, while monitoring conditions and adjusting exposure. It provides an indicator formula and a Python example, but neither supplies backtest results or evidence that the selection rules are profitable; the code also does not fully substantiate every stated filter.
Key ideas
- The screen requires RSI below 65 and a daily price increase greater than 1%.
- It limits candidates to main-board stocks and removes those that reached the price limit the previous day.
- The document characterizes the rules as a basic technical and market-activity screen rather than a tested strategy.
- It identifies market reversals and volatility after strong rallies as possible risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.