A-Share Screen Using RSI, Seven Down Days, and Tradable Share Count

Summary

This A-share screening rule combines three conditions: RSI below 65, seven consecutive sessions with closing prices at or below opening prices, and tradable shares no greater than 5.5 billion. The document frames RSI as a measure of whether a stock is already overbought, the sequence of down sessions as a price-pattern filter, and the share-count limit as a way to restrict the eligible universe. It also mentions excluding special-treatment shares in its illustrative implementation and requiring a positive move on the screening date.

The page offers sample indicator logic and a Python outline, but reports no historical test, portfolio construction, transaction costs, or measured returns. It warns that daily tradable share data may differ from other share-capital figures and that market risk remains. Data interface quality and delay can affect selections. Suggested extensions include considering moving-average position and trading volume, but these are proposals rather than validated improvements.

Key ideas

• The screen requires RSI below 65, seven consecutive down sessions, and a tradable share count at or below 5.5 billion.
• The example implementation also excludes special-treatment stocks and checks for a positive move on the selection date.
• The document reports no backtest or performance evidence for the rule.
• Share-count definitions and data quality or latency may affect which stocks are selected.

Tags

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