Chinese Stock Screen Using Range, RSI, and a Prior Limit-Down Signal

Summary

This Chinese stock-selection rule combines three filters: daily amplitude above 1%, RSI below 65, and a prior-day 9:15 matching price described as limit-down. The article frames the selected shares as possible candidates for short selling, reasoning that the combination reflects price movement, RSI level, and a severe prior decline. It gives reference expressions for calculating amplitude and RSI, and suggests combining the conditions in a screening workflow.

The document warns that these filters omit other relevant information, including company fundamentals and market themes, and that short-term volatility can make selections unstable. It recommends considering additional indicators such as volume and MACD, testing the rule empirically from multiple angles, accounting for broader market direction, and adding risk controls. However, it provides no historical results, precise RSI lookback, or fully specified execution and risk-management rules. The proposal should therefore be treated as a screening hypothesis rather than a validated short-selling strategy.

Key ideas

• The screen combines amplitude above 1%, RSI below 65, and a prior-day 9:15 matching-price limit-down condition.
• The article presents selected stocks as potential short candidates but provides no backtest evidence.
• Fundamental information, market themes, and short-term instability may affect the screen’s selections.
• The author suggests adding indicators, testing the rule, considering market direction, and applying risk controls.

Tags

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