A Main-Board Stock Screen Using RSI, Three Down Days, and a Daily Gain

Summary

This Chinese equity screen seeks main-board stocks with a 14-period RSI below 65, three consecutive declining sessions, and a current-day gain exceeding 1%. It combines a momentum-style rebound condition with recent weakness and a market-segment filter. The article suggests that the setup could be broadened with fundamental, industry, and macroeconomic variables, or developed into a more comprehensive model.

The document provides formula and Python-style examples, but no backtest, return data, or comparison with a benchmark. Its examples are inconsistent: the written rule specifies three consecutive down days, while the displayed code checks prior closes against opens in a way that appears to test only one prior session and uses comparisons that may indicate up days. The examples therefore do not establish a reliable implementation. The article itself also cautions that the narrow technical rules may miss fundamental, industry, and policy influences and may be vulnerable to market volatility.

Key ideas

• The stated screen requires RSI below 65, three consecutive down sessions, a gain above 1% today, and main-board membership.
• The setup combines recent weakness with a positive current-day move.
• The article proposes adding fundamental, industry, and macroeconomic inputs.
• No backtest or evidence of predictive performance is reported.
• The displayed code does not consistently implement the written three-day decline condition.

Tags

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