Chinese Beverage and Alcohol Stock Screen Using RSI and Moving Averages

Summary

The post describes a China-focused stock screen combining three conditions: RSI below 65, membership in the beverage and alcohol import-export industry, and a short moving average above a longer one. Its example specifies a 14-period RSI and compares 5-period and 10-period simple moving averages. The Python example also filters for market capitalization of at least 200 million, excludes special-treatment stocks, and ranks candidates by net money flow. These implementation details make the screen more concrete than the headline rules alone.

The post frames RSI as a measure of buying and selling conditions and moving-average separation as a sign of inflows, but it provides no backtest results or evidence that the sector filter predicts returns. It cautions that sudden market events and short-term price swings can undermine the screen, and suggests adding other indicators and risk controls such as stop losses and position management. The listed conditions should therefore be treated as a candidate-selection recipe, not a validated strategy.

Key ideas

• The core screen requires RSI below 65, a specified industry, and a rising short-versus-long moving-average relationship.
• The code example uses a 14-period RSI and compares 5-period and 10-period simple moving averages.
• The implementation adds market-capitalization and special-treatment filters, then ranks candidates by net money flow.
• The post supplies no backtest evidence and recommends additional risk controls.

Tags

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