A Stock Screen Combining RSI, Seven Down Days, and Control Activity

Summary

This document describes a Chinese stock-selection screen using three conditions: RSI below 65, seven consecutive bearish days, and a stated “today control” measure above 21. It presents the screen as a way to find shares that have fallen for several sessions while retaining a measure of market interest. A formula reference defines RSI with a default 14-day period and describes the control measure using volume relative to 20-day average volume. Example code is also provided, though its data fields and implementation details may not match those definitions exactly.

The article offers no backtest, performance results, or validation showing that the conditions predict a rebound. It acknowledges that the screen relies on technical and partial activity measures, may omit other capital flows, and can overlook liquidity. It suggests considering additional indicators, fundamental and industry information, and average turnover. The screen is therefore a candidate-generation rule, not evidence of an expected return or a complete risk-management method.

Key ideas

• The screen requires RSI below 65, seven consecutive bearish sessions, and a control-activity reading above 21.
• The RSI reference uses a 14-session default, while the stated activity formula compares volume with its 20-session average.
• The article interprets a prolonged decline as a possible low-level rebound setup, but provides no supporting performance test.
• It recommends considering liquidity, other technical measures, fundamentals, industry conditions, and additional capital-flow information.

Tags

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