A-Share Screen Using RSI, Seven Down Sessions, and Float Value

Summary

The document proposes screening Chinese A-share stocks using three conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and a circulating market value between 5 billion and 10 billion yuan. It presents this as a combined technical and size-based filter and includes a code example intended to implement the screen. No backtest results, comparison, or performance evidence are reported.

The article suggests adding valuation measures and industry information to broaden the analysis and improve diversification. It also notes that the screen may overlook smaller companies and does not account adequately for sector or overall market conditions. The supplied code appears inconsistent with the stated seven-down-session rule: it continues past stocks when all seven sessions meet the condition, which would exclude the intended candidates. The rule’s RSI period is given as 14 by default, but the screen’s profitability and robustness remain untested in the document.

Key ideas

• The proposed screen combines RSI below 65, seven consecutive down sessions, and a specified circulating market-value range.
• The article offers no backtest or other performance evidence for the selection rules.
• It recommends considering valuation and industry factors as additional inputs.
• The article acknowledges that its size range and lack of market context may limit the screen.
• The code example appears to reject stocks that satisfy the stated seven-session condition.

Tags

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