A-Share Screen Using RSI, Seven Down Days, and Rising DEA

Summary

This note describes a technical screen for Chinese stocks combining RSI below 65, seven consecutive sessions in which the close is below the open, and a rising DEA, the smoothed signal line of MACD. It interprets the RSI threshold as avoiding an overbought condition, the consecutive down sessions as evidence of weakness, and rising DEA as a possible sign of near-term improvement. The combination therefore looks for stocks showing recent selling alongside a potential shift in momentum.

The document gives indicator definitions and sample screening logic, but provides no backtest, performance evidence, or trading rules for entries, exits, and position sizing. It warns that technical signals alone omit company fundamentals and recommends adding fundamental and technical checks. The sample code and formula descriptions are references rather than a validated implementation; in particular, parts of the code and the seven-day condition appear inconsistent with the stated screen, so results would need careful verification before use.

Key ideas

• The screen combines RSI below 65, seven sessions with closes below opens, and a rising MACD DEA line.
• The proposed interpretation mixes recent weakness with a possible improvement in short-term momentum.
• The note provides indicator formulas and example code but no evidence of profitability.
• It recommends adding fundamental measures and further technical checks, and the sample implementation should be verified.

Tags

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