A-Share Screen Using RSI, Seven Down Days, and a Recent Price Surge

Summary

This community post proposes a technical screen for Chinese A-share stocks. It selects shares with RSI below 65, seven consecutive down sessions, and at least one daily gain of 10% or more during the previous 25 trading days. The stated rationale combines a recent decline, which may indicate a lower price level, with evidence of a prior sharp move that the author interprets as market activity or buying interest. The post offers illustrative formulas and a Python example for applying the conditions to market data.

No backtest, return series, comparison benchmark, or evidence of predictive performance is provided, so the screen should be treated as a candidate rule rather than a demonstrated strategy. The author frames it as short-term and warns that technical conditions alone cannot predict prices reliably. Fundamental information, liquidity, other indicators, and changing market conditions are not incorporated in the core rule. The example also depends on external data feeds, whose availability and quality may affect results. The post suggests combining the signal with additional technical, fundamental, and trading-activity measures, but does not test those additions.

Key ideas

• The screen requires RSI below 65 and seven consecutive sessions in which the close is no higher than the open.
• It also requires at least one daily gain of 10% or more during the preceding 25 trading days.
• The post interprets prolonged declines as possible rebound conditions and a recent large gain as evidence of market activity.
• The document provides example implementations but gives no backtest results or benchmark comparison.
• The rule omits fundamentals and liquidity checks, which the post identifies as relevant limitations.

Tags

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