Chinese Stock Screen Using RSI, K, and Circulating Market Value

Summary

This stock selection rule screens for RSI below 65, a K indicator below 20, and circulating market value between 5 billion and 10 billion yuan. The article presents the combination as a way to identify stocks with weak technical readings while restricting the universe by company size. Its accompanying example calculates RSI over 14 periods and derives K from the close relative to the recent high-low range over nine periods. When at least five names meet the conditions, it sorts them by percentage change and selects up to five.

The page warns that RSI and K may be incomplete or inaccurate, that the filter can miss smaller high-quality companies, and that market conditions change. It suggests adding indicators such as MACD or Bollinger Bands and considering sector trends and company fundamentals. No backtest performance or evidence of profitability is supplied, so the screen should be treated as a selection rule rather than a validated strategy.

Key ideas

• The screen requires RSI below 65, K below 20, and circulating market value between 5 billion and 10 billion yuan.
• The example calculates RSI over 14 periods and K over a nine-period high-low window.
• If at least five stocks qualify, the example ranks them by percentage change and selects up to five.
• The article notes indicator limitations, possible missed opportunities, and sensitivity to market conditions.
• It provides no backtest results demonstrating profitability.

Tags

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