A-Share Screen Using RSI, Seven Down Days, and Region Exclusion

Summary

This document describes a Chinese A-share stock screen that selects shares with a 14-period RSI below 65 and seven consecutive sessions in which the close is no higher than the open, while excluding Beijing-listed companies. It presents the rules as a combination of a technical condition, a recent declining pattern, and a geographic filter. A sample implementation outline and indicator reference are included, but the document provides no measured performance or backtest evidence.

The proposed rationale is that the RSI cutoff avoids highly overbought readings, while the losing-day sequence identifies a pronounced decline. The source also claims the regional exclusion may reduce policy uncertainty, but gives no supporting analysis for that assumption. It acknowledges that the screen omits company fundamentals, can exclude strong candidates, and cannot predict price changes reliably. It suggests adding fundamental measures and reviewing risk and return tradeoffs; the rule should therefore be treated as a hypothesis for testing rather than a validated strategy.

Key ideas

• The screen combines RSI below 65 with seven consecutive sessions where closing prices do not exceed opening prices.
• It excludes Beijing-listed A-shares as an additional geographic filter.
• The described rules use technical inputs and do not include company fundamentals.
• The document offers no performance evidence, and the regional risk rationale is unsupported by analysis.

Tags

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