A-Share Stock Screening with RSI, Daily Gains, and a Price Cap

Summary

This note describes a Chinese A-share screen combining RSI below 65, a daily gain above 1%, main-board listing status, and a share price below 12 yuan. It presents the conditions as a way to select stocks with relatively strong near-term movement while limiting the universe by board and price. The accompanying examples also rank candidates by stock heat and, in the Python example, apply additional filters for positive assets, price-to-book below 3, and positive price-to-earnings below 100.

The rationale offered is that a sub-65 RSI may leave room for a rebound, while a daily gain above 1% indicates momentum. These claims are not supported with backtest results or performance data, and the explanation inaccurately characterizes RSI below 65 as an oversold condition. A low nominal share price does not establish upside potential, and the screen may be vulnerable to market regime changes and noisy technical signals. The note recommends adding other factors and explicit risk controls, but does not define their parameters or demonstrate that the combination produces excess returns.

Key ideas

• The screen requires RSI below 65, a daily gain above 1%, main-board status, and a price below 12 yuan.
• The example implementation adds valuation and asset filters, then sorts candidates by a stock-heat measure.
• The note links RSI and daily gains to possible rebound and momentum effects, but provides no empirical evidence.
• It identifies market conditions and reliance on technical signals as risks and suggests adding factors and risk controls.

Tags

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