Chinese Stock Screen Using RSI, a Rising-Move Setup, and 2021 Performance

Summary

This document describes a Chinese stock selection approach that combines an RSI reading below 65, a condition labeled as the start of a major advance, and favorable performance during 2021. The stated indicator rules include a 14-period RSI threshold and comparing recent 30-period highs and lows with their prior values. A Python example adds further filters and defines favorable performance using price and volume comparisons, though those details are not fully aligned with the headline description.

The article gives no backtest or evidence that the conditions improved returns. It warns that relying on short-term price behavior and a past calendar year can encourage trend chasing, miss other candidates, and fail under changed market conditions. It recommends considering more technical indicators and company fundamentals. The historical-year filter and inconsistent example mean the approach needs precise specification and independent testing before use.

Key ideas

• The screen combines RSI below 65 with a 30-period high-and-low condition and a 2021 performance filter.\nThe Python example introduces extra price, volume, and universe filters.\nThe article provides no measured performance evidence for the approach.\nA screen tied to one past year may not generalize to later market conditions.\nThe author suggests adding technical and fundamental measures for broader evaluation.

Tags

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