A-Share Screening with Turnover, Seven Down Days, and RSI

Summary

This note describes a technical stock screen for Chinese equities. It selects shares with turnover between 3% and 12%, seven consecutive sessions in which the close is below the open, and a 14-day RSI below 65. The proposed rationale is to look for a possible rebound after a run of declining sessions while avoiding stocks the screen considers overbought. The note also gives indicator and Python examples for applying the conditions.

The document offers no backtest, return series, or evidence that the screen predicts rebounds. It cautions that technical indicators can lag or mislead and that the rules omit company fundamentals, so selected stocks may have weak investment prospects. Its formula example does not fully match the stated screen: it uses a seven-day close comparison and other conditions rather than directly encoding every stated criterion. The screen should therefore be treated as a hypothesis requiring careful implementation and testing, with added fundamental or technical checks considered by the author.

Key ideas

• The screen combines turnover between 3% and 12% with seven consecutive down sessions and RSI below 65.
• The proposed rationale is to identify potential rebounds after persistent declines.
• The note warns that technical signals can lag and that the screen omits fundamental analysis.
• The provided formula example differs from the prose conditions, so implementation details require checking.

Tags

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