A-Share Screen Using RSI, Seven Down Candles, and Daily Return Limits

Summary

The document describes an A-share stock screen combining an RSI below 65, seven consecutive down sessions, and a daily return between -5% and 2.6%. It presents the rules as a way to find stocks that have weakened recently without showing a strong daily move, and includes example indicator definitions and screening code. The code also applies extra filters, including a market capitalization range and a Shanghai exchange restriction.

The post gives no backtest results or evidence that the screen predicts returns. It warns that a technical-only approach can miss macroeconomic and industry risks, and suggests combining technical signals with financial and market context. There are inconsistencies between the prose and sample implementation: the code’s candle condition appears to reject stocks when all seven sessions meet the stated candle test, while the prose calls for seven consecutive down sessions; other code filters are not part of the stated final rule. Treat the screen as an unvalidated idea requiring careful specification and testing.

Key ideas

• The stated screen combines RSI below 65, seven consecutive down sessions, and a daily return from -5% to 2.6%.
• The sample code adds market capitalization and exchange filters beyond the headline selection rule.
• The post supplies no performance results establishing that the conditions predict returns.
• Technical signals may omit macroeconomic, industry, and fundamental risks.
• The sample candle logic appears inconsistent with the prose and should be checked before use.

Tags

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