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

Summary

This A-share selection rule looks for stocks with an RSI below 65, seven consecutive sessions in which the close is below the prior close, and float market value above 10 billion yuan. It combines a momentum-style oscillator and recent price weakness with a large-capitalization filter. The article presents this as a way to narrow the stock universe, and suggests adding other technical and fundamental measures such as moving averages, volume, valuation ratios, and data quality checks.

The document includes sample formulas and a Python outline, but it provides no backtest, selected-stock history, or measured performance. It acknowledges that large float value does not establish company quality and that market instability can undermine the screen. The seven-day decline condition and RSI threshold may identify weakness without indicating whether a reversal or further decline is more likely. The code’s data sources and calculation details also require validation before the screen could be reproduced reliably.

Key ideas

• The screen requires RSI below 65 and seven consecutive lower closes.
• It additionally selects stocks with float market value above 10 billion yuan.
• The author suggests augmenting the rule with price, volume, valuation, and other fundamental measures.
• Large market value does not guarantee strong financial quality.
• The document provides no evidence from a backtest or realized performance.

Tags

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