A-Share Screening with RSI, Seven Down Candles, and Daily Range

Summary

This A-share stock screen combines three technical conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and a daily price range greater than 1. The note interprets the RSI threshold as avoiding an overbought reading, the run of down candles as evidence of selling pressure, and the range condition as selecting more volatile stocks. It also outlines a Python-based example for retrieving market data and applying filters.

The article cautions that the screen ignores company fundamentals and that a long run of down candles can misclassify stocks during sharp declines or unusual moves. It suggests adding financial quality checks and other technical context, such as volume, moving averages, and candlestick patterns, as well as monitoring results as data and market conditions change. It provides no performance results or evidence that the screen is profitable; its rationale is qualitative, and the criteria are presented as a starting point for further research.

Key ideas

• The screen requires RSI below 65, seven sessions closing below their opens, and a daily range above 1.
• The author associates the conditions with avoiding overbought readings, selling pressure, and higher volatility.
• The screen uses technical data and does not assess company fundamentals.
• A prolonged sequence of down candles may produce misleading selections during sharp declines.

Tags

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