Chinese Stock Screen Using RSI Below 65 and Three Down Days

Summary

This note describes a technical screen for Chinese stocks whose codes begin with 60, whose 14-period RSI is below 65, and whose closing prices have fallen below their opening prices for three consecutive sessions. It gives example formula logic and a Python-oriented outline for calculating RSI and checking the consecutive down-day condition. The selection combines a market segment restriction with a momentum oscillator and a short run of weak daily candles.

The article’s explanations are inconsistent about whether the method is purely technical or also incorporates fundamentals, but it does not define or apply any fundamental filters. It reports no backtest, return, or risk statistics. It acknowledges that RSI can lag or mislead, that limiting the universe by code prefix excludes other stocks, and that market sentiment may affect outcomes. The screen should be treated as a candidate-generation rule requiring multi-period testing and explicit risk controls, not as evidence of an established edge.

Key ideas

• The screen requires a 14-period RSI below 65, three consecutive sessions with close below open, and a stock code beginning with 60.\nThe examples show how to calculate RSI and detect the three down sessions.\nThe article provides no empirical performance evidence and notes the lag and error risk of technical indicators.\nRestricting the universe to one code prefix may omit other candidates, while sentiment and risk controls remain unaddressed.

Tags

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