China Stock Screening with RSI, Industry, and Prior Limit-Up Filters

Summary

This document outlines a Chinese equity screening rule combining three conditions: a 14-period RSI below 65, membership in the beverage and alcohol import-export industry, and a prior session that did not close at the daily limit-up threshold. The accompanying example also filters for market capitalization of at least a stated threshold and excludes special-treatment stocks, then ranks remaining candidates by net money-flow volume. The article presents the prior limit-up filter as a way to avoid selecting stocks after especially strong price moves.

The rationale is that RSI provides a technical measure of buying and selling conditions, while industry membership narrows the universe; the prior-day price filter adds another selection constraint. The article cautions that technical signals can be misleading and that relying on a few indicators may omit broader market risks or unreliable fundamentals. It suggests combining additional indicators, valuation or growth information, and risk controls such as stops and diversification. No backtest methodology, returns, benchmark comparison, or evidence for the claimed potential is supplied, so the screen is a candidate-generation idea rather than a demonstrated strategy.

Key ideas

• The screen selects stocks with a 14-period RSI below 65 in a specified beverage and alcohol import-export industry.
• It excludes stocks that closed at the prior session’s limit-up threshold.
• The code example additionally filters out special-treatment stocks and ranks candidates by net money-flow volume.
• The article warns that indicator-based screening can produce misleading signals and overlook wider market risks.
• It provides no backtest details or evidence that the screening rule is profitable.

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