A-Share Screen Using RSI, Seven Down Days, and Low KDJ

Summary

This post proposes a technical screen for Chinese A-share stocks. It selects shares with RSI below 65, seven consecutive sessions in which the close is no higher than the open, and a KDJ stochastic K reading below 20. The accompanying code sketch describes retrieving market data, checking indicator history, applying the conditions, and listing matching stocks. RSI is referenced with a default period of 14, while the KDJ parameters are described as using a nine-session stochastic calculation with smoothing periods of three.

The rationale is that a sustained run of declining candles and a low KDJ reading may identify weak or potentially interesting setups, while the RSI threshold excludes some candidates. However, the post offers no backtest, benchmark, sample, or measured risk and return. It acknowledges that technical indicators may fail and suggests further liquidity, fundamental, and technical filters. Its claims of favorable risk control or stock-picking potential are not substantiated, and the screen should be treated as a hypothesis requiring careful testing, including attention to data quality and selection bias.

Key ideas

• The proposed screen combines an RSI threshold, seven declining or flat sessions, and a low KDJ K value.
• The code sketch uses indicator history and recent price bars to filter and report candidate stocks.
• The post gives no backtest results or measured evidence that the screen predicts returns.
• It identifies liquidity, indicator reliability, and broader market risk as limitations to examine.

Tags

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