A Stock Screen Combining RSI, Three Losing Sessions, and Profit Growth

Summary

This Chinese equity-screening post proposes selecting stocks with RSI below 65, three consecutive down sessions, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. It combines a technical condition intended to capture recent weakness with a profitability-growth filter. The post includes illustrative indicator logic and sample code, but the displayed examples do not consistently represent three consecutive down sessions or the full stated growth range, so implementation details need checking.

The author describes the approach as a way to consider technical and fundamental information together, while acknowledging that the narrow rules omit other company, industry, policy, and market influences. Suggested improvements include adding valuation measures and broadening the fundamental analysis; machine learning is mentioned as a possible tool. The document gives no backtest, comparative evidence, or return results, and the selected conditions alone do not establish that a stock is undervalued or likely to recover.

Key ideas

• The proposed screen requires RSI below 65, three consecutive down sessions, and parent-attributable net profit growth within a stated range.
• It pairs a recent-price weakness condition with a fundamental earnings-growth filter.
• The post acknowledges that the narrow criteria omit valuation, industry, policy, and broader market factors.
• The example logic has inconsistencies with the stated three-session and growth conditions.
• No empirical performance or backtest evidence is provided.

Tags

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