A Chinese Stock Screen Using RSI, Three Candles, and a Price Threshold

Summary

This post proposes a Chinese stock screen combining a 14-period RSI below 65, a three-candle condition, and a close above the previous session’s low. It presents indicator logic and example implementation references, and ranks qualifying shares by percentage change. The stated rationale is that the RSI threshold and recent price movement may help identify a rebound after weakness.

There is an important inconsistency: the prose describes three consecutive down sessions, while the supplied conditions compare each prior close as greater than its open, which denotes up sessions. The post also offers no backtest or performance evidence. It acknowledges that technical signals can lag, may omit company fundamentals and broad market conditions, and may concentrate picks in particular sectors. Suggestions to add valuation, profitability, other indicators, and an index filter are proposals rather than tested improvements.

Key ideas

• The proposed screen combines an RSI threshold, a three-session candle pattern, and a close above the prior low.
• The written description says three down sessions, but the example conditions check for prior up sessions.
• The post supplies implementation references but no backtest results or evidence of profitability.
• It identifies lagging signals, missing fundamentals, and market-wide conditions as limitations.

Tags

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