Chinese Stock Screen Using RSI, Three Down Days, and No Limit-Up

Summary

This Chinese stock-screening note proposes selecting equities with a 14-period RSI below 65, three consecutive declining sessions, and no limit-up on the previous day. It presents the combination as a way to find technically weaker or less overheated stocks, using the RSI and recent daily candles alongside the prior session’s price-limit status.

The note supplies example indicator logic and Python-style screening code, but its implementations are not fully consistent: the candle comparisons shown identify sessions where close exceeds open, and the Python proxy for a prior limit-up uses a rolling high. No backtest results or performance evidence are provided. The author flags that sentiment and investor behavior are difficult to predict and that technical filters may overlook company quality and financial performance. Fundamental measures, volume and price analysis, and broader market context are suggested as possible additions; the screen alone does not establish an expected return or control downside risk.

Key ideas

• The screen combines an RSI threshold with three consecutive sessions and a prior-day limit-up exclusion.
• The proposed RSI uses a 14-period lookback and a cutoff below 65.
• The article’s code examples do not cleanly match the stated three-down-day and limit-up conditions.
• The note provides no empirical performance evidence and warns that technical signals can miss company fundamentals.
• Additional price, volume, fundamental, and market-wide inputs are suggested for further evaluation.

Tags

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