A Chinese Stock Screen Using RSI, Two-Day Highs, and Opening Gains

Summary

The document outlines a Chinese equity screening rule combining three conditions: RSI below 65, the current high at the highest level over two days, and the gain at 9:25 below 6%. It then adds a circulating market-cap threshold above 100 billion yuan. The stated rationale is to favor stocks showing price strength while limiting unusually high pre-open gains and excluding very small companies.

The post suggests supplementing the technical screen with fundamental and industry analysis, or adding indicators such as moving averages and MACD. It includes a Python example using historical prices and RSI, but the code is only a reference and is not fully self-contained; the post itself cautions that practical use needs adjustment. No backtest results or evidence of profitability are provided, and the screen may miss volatile stocks or select companies with weak fundamentals.

Key ideas

• The screen requires RSI below 65, a two-day high, and a 9:25 gain below 6%.
• It adds a circulating market-cap floor above 100 billion yuan.
• The post recommends combining technical filters with fundamental and industry analysis.
• Its Python example is illustrative and may require changes for real use.
• No backtest or profitability evidence is reported.

Tags

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