Chinese Stock Screen Using RSI, Market Capitalization, and Turnover

Summary

This Chinese stock-selection strategy filters for an RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, and prior-day turnover above 8%. The accompanying Python example calculates a 14-period RSI, applies the three conditions, and, when at least five stocks qualify, ranks them by turnover and returns the top five. The screen is intended to combine a technical indicator, company size, and trading activity.

The source offers a rationale for the filters but no backtest, live results, or benchmark comparison, so it does not establish predictive value. It also warns that the screen omits company fundamentals, industry conditions, and macroeconomic context. Turnover can reflect short-term sentiment or liquidity effects, and a single day's reading may not show persistent trading activity. Suggested improvements include adding valuation and fundamental analysis and checking turnover persistence alongside volume.

Key ideas

• The screen combines RSI below 65, a specified market-cap range, and prior-day turnover above 8%.
• The example uses a 14-period RSI and ranks qualifying stocks by turnover.
• The method does not assess company fundamentals, industry prospects, or macroeconomic conditions.
• The source cautions that a high turnover reading may not represent sustained activity.
• No performance testing or results are provided.

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