Chinese Stock Screen Using RSI, Float Market Capitalization, and Reversal Candles

Summary

This stock-selection proposal filters for an RSI below 65, a tradable float market value between 5 billion and 10 billion yuan, and a reversal or engulfing-style candle condition described as a price rebound. Its sample Python function calculates a 14-period RSI, applies the market-value and daily-range conditions, and, when enough candidates qualify, ranks them by percentage change and returns a small shortlist. The implementation's range test is a rough proxy and does not define a full reversal pattern.

The article notes that RSI and candlestick signals can be incomplete or unstable, and that market direction and volatility may expose selected stocks to drawdowns. It recommends combining the screen with financial measures such as leverage, earnings, and cash flow, alongside broader trend and sector analysis. Despite describing the candidates as potentially attractive, the note reports no backtest or performance evidence. The stated rationale should therefore be treated as a screening hypothesis, not a demonstrated source of returns.

Key ideas

• The proposed screen combines RSI below 65 with a float market value range of 5 to 10 billion yuan.
• A rebound or reversal candle is the third selection condition.
• The sample code ranks qualifying names by percentage change when at least five pass.
• The article advises adding financial and market-trend information to address limitations.
• No evidence of historical or live performance is given.

Tags

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