A-Share Screen for Moderate RSI, Seven Down Days, and Rising Volume

Summary

The document outlines an A-share stock screen combining RSI below 65, seven consecutive sessions in which the close is below the open, and a daily increase in trading volume greater than 5% compared with the prior session. It frames the RSI threshold as avoiding highly overbought stocks, the sequence of down sessions as evidence of weakness, and rising volume as a sign of increased buying activity. It also provides formulas and example code intended to find stocks meeting these conditions.

The screen mixes price action with volume, but the document reports no backtest results or evidence of predictive performance. It cautions that the rules omit company fundamentals and that a fixed volume threshold may ignore broader market conditions. Suggested refinements include adding fundamental factors, testing indicator parameters, incorporating other trend measures, and adjusting the volume condition to the market environment. The text does not specify portfolio construction, holding period, transaction costs, or a reliable validation process; its sample code should also be checked against the stated seven session condition before use.

Key ideas

• The screen combines RSI below 65, seven consecutive down sessions, and a daily volume increase above 5%.
• The document interprets rising volume as possible buying interest despite recent weakness.
• No backtest or performance evidence is provided for the proposed conditions.
• The author recommends considering fundamentals, additional indicators, and market level context.
• Portfolio rules, trading costs, and validation details are not specified, and the example implementation warrants checking.

Tags

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