A-Share Screen Using RSI, Seven Down Days, and the 10-Day Average

Summary

This stock-screening idea selects shares when RSI is below 65, the latest seven sessions are down days, and the current opening price is near the 10-day moving average. The article presents this combination as a technical filter intended to find pullbacks while avoiding securities with an elevated RSI. It also sketches how to implement the conditions with market data and indicator calculations.

The screen is not supported by backtest results or a defined trading and exit plan. The article itself notes that the rules use limited technical inputs, omit company fundamentals and can be affected by changing market conditions and data quality. Its proposed refinements include adding valuation or earnings measures and other technical inputs such as volume, while cautioning that adding indicators does not ensure robustness.

Key ideas

• The screen requires RSI below 65 and seven consecutive down sessions.
• It also requires the opening price to be close to the 10-day moving average.
• The rules focus on technical data and do not assess company fundamentals.
• Market regime changes and data quality may affect screening results.
• The article suggests considering fundamentals and volume as possible additional filters.

Tags

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