A-Share Screen Combining RSI, Earnings Growth, and the 10-Day Average

Summary

This stock-selection proposal combines a 14-period RSI below 65, positive parent-company net-profit growth above 20% and up to 100%, and an opening price above its 10-day moving average. It also describes requirements for positive net profit and filters intended to restrict the universe to eligible, listed A-shares. The stated rationale is to find growth stocks with moderate RSI readings and prices holding above a short-term average. The article includes SQL-style and Python examples, although their data fields and calculations are not fully aligned: one example refers to year-over-year growth, while the Python example computes percentage change in a profit series.

The author warns that the screen omits other important company and market factors, such as industry outlook, capital structure, broader market conditions, and policy changes. Suggested refinements include adding valuation measures and other technical indicators. No backtest results, portfolio rules, transaction costs, or evidence of predictive performance are provided, so this is a screening hypothesis rather than a validated investment strategy.

Key ideas

• The proposed screen selects stocks with RSI below 65 and opening prices above the 10-day moving average.
• It also requires positive net profit and year-over-year profit growth above 20% and no greater than 100%.
• The article gives a technical and fundamental rationale but does not present performance evidence.
• The author notes that industry, capital structure, market conditions, and policy changes are not fully considered.
• Valuation measures and additional technical indicators are suggested as possible refinements.

Tags

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