Chinese Stock Screen Using RSI, Daily Gains, and Float Size

Summary

The document describes a Chinese A-share screening idea that combines a six-period RSI below 65, a daily gain above 1%, main-board listing, and circulating shares capped at 5.5 billion. It presents the screen as a way to find smaller companies with positive short-term price momentum while avoiding stocks considered overbought by its RSI threshold. The accompanying rationale links lower float size to potential growth, but provides no market data to support that claim.

The article includes example indicator and Python implementations, though parts of the code appear inconsistent with the written rules: the indicator condition checks for a close above the prior close without enforcing a gain greater than 1%, and the shown indicator conditions do not implement the main-board restriction. It also cautions that fixed filters can miss changing market conditions, technical signals can be false, and float size alone does not assess financial risk. No backtest, performance results, or detailed portfolio and exit rules are supplied.

Key ideas

• The proposed screen combines RSI below 65 with a daily gain above 1%, main-board status, and a circulating-share limit.
• The article interprets RSI as a way to avoid overbought stocks and the daily gain as a momentum signal.
• The written screening rules and example indicator code do not fully match, so implementation details need checking.
• The document offers no performance evidence and recommends adapting filters to market conditions and assessing risk.

Tags

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