Chinese Stock Screen Combining RSI, Consecutive Candles, and Company Type

Summary

This Chinese stock-screening note proposes combining an RSI reading below 65 with three consecutive down candles and a company-type filter. Its discussion says the company classification is intended to add a fundamental dimension to a screen otherwise based on price behavior. The examples also include a closing-price ceiling of 12, although this condition is not included in the stated final screening logic.

The note warns that company type alone does not account for financial health or industry conditions, and that classifications may change. It suggests adding financial and industry measures and updating the filter when company status changes. There is an important inconsistency: the prose calls for three down candles, but the sample conditions compare prior closes as greater than prior opens, which describes up candles. No backtest, return data, or evidence that the screen selects better stocks is provided, so the rule needs clarification and validation before use.

Key ideas

• The proposed screen combines RSI below 65, three consecutive down candles, and a company-type condition.
• The sample code includes a price ceiling that is absent from the stated final logic.
• The candle comparisons in the example appear to select rising candles rather than falling candles.
• The note recommends adding financial and industry filters and monitoring changes in company classification.
• No backtest or performance evidence is reported.

Tags

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