A Stock Screen Combining RSI, Seven Down Days, and Relative Volume

Summary

This Chinese stock-screening proposal combines an RSI below 65 with seven consecutive down sessions and a volume ratio between 1.5 and 6. The conditions aim to find stocks that have recently declined without an RSI reading above the chosen ceiling, while excluding volume that is unusually low or high. The document describes the approach as a technical screen and suggests adding momentum or candlestick information and improving data quality.

The supplied implementation notes use several data sources and describe screening steps, but the text provides no backtest, sample period analysis, or evidence that the rules predict returns. There are also inconsistencies: the discussion initially gives a different upper bound for the volume ratio, the code adds a positive current-day price-change check, and the explanation loosely refers to fundamental factors although the stated screen is based on technical and volume measures. These details make the screen’s exact specification uncertain.

Key ideas

• The proposed screen requires RSI below 65 and seven consecutive sessions where the close is no higher than the open.
• The stated volume-ratio range is 1.5 to 6, though one description gives a conflicting upper bound.
• The code adds a positive current-day price-change condition not included in the summary rule.
• The document offers no empirical performance evidence and flags data quality and changing market conditions as concerns.

Tags

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