A Momentum Screen Using Recent Limit-Ups, Volume Growth, and RSI

Summary

This Chinese stock-screening post combines three conditions: an RSI below 65, current volume more than 5% above the prior session, and more than two limit-up days within the past ten days. The rationale is that a moderate RSI may leave room for a rebound, rising volume may indicate increased interest, and repeated limit-ups signal strong short-term attention. The post offers indicator formulas and a Python example, but the example uses volume growth as a proxy for the stated increase in holdings, and its limit-up calculation is simplified.

The author notes that these signals reflect short-term market behavior and can overlook company fundamentals and broader market context. Suggested refinements include adding financial and industry information, as well as other trading activity measures. The document provides no backtest results, benchmark, or evidence that the combined conditions predict future returns. The screen is therefore best understood as a proposed hypothesis for testing, with implementation details and data definitions needing review before use.

Key ideas

• The screen requires RSI below 65, volume growth above 5%, and more than two recent limit-up sessions.
• The rationale combines a moderate momentum reading with rising activity and recent strong price moves.
• The example code uses volume growth as a stand-in for the stated increase in holdings.
• The author identifies gaps in fundamental and market-context analysis.
• No performance evidence is supplied, and the formulas require careful validation.

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