A Chinese Stock Screen Using RSI, Seven Bearish Days, and Recent Highs

Summary

This document presents a technical screen for Chinese stocks using RSI below 65, seven consecutive sessions in which the close is below the open, and a latest high equal to the highest high across the most recent two sessions. It describes RSI as a gauge of whether a stock is overbought and the run of bearish sessions as a sign of weakness, while the recent-high condition is intended to capture a local price extreme. It gives indicator references and a Python sketch for applying the filters.

The article acknowledges that the rules rely on short-term price behavior, omit fundamentals, and may be vulnerable to noise and volatility. It suggests adding fundamental measures and other indicators, but reports no backtest or evidence of predictive value. There is also an internal inconsistency: the prose and heading call for seven consecutive down sessions, while the code’s comparison uses a condition that appears to reject cases where all seven closes are at or below their opens. The exact high-price rule and session windows should likewise be verified before use.

Key ideas

• The proposed screen combines RSI below 65 with seven bearish sessions and a recent two-session high condition.\nThe article treats these as short-term technical filters rather than demonstrated return predictors.\nIt cautions that fundamentals and broader risks are omitted.\nThe example code appears inconsistent with the stated seven-session condition and requires verification.

Tags

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