Chinese Stock Screen Using RSI, Three Down Days, and Price
Summary
The proposed stock screen combines a 14-period RSI below 65, three consecutive bearish candles, and a share price equal to 18.5 yuan. The document frames RSI and the sequence of declining sessions as technical filters, with the price condition as a crude valuation constraint. It includes indicator formulas and sample implementation references for applying the conditions to stock data.
No backtest results or evidence of profitability are reported. The discussion notes that a fixed share-price threshold can exclude higher-priced companies and that the screen does not account for overall market direction or risk. It suggests adding measures such as market capitalization, valuation ratios, industry trends, and market risk controls. The criteria therefore describe a basic candidate-selection rule, not a complete trading strategy or demonstrated valuation method.
Key ideas
- The screen requires a 14-period RSI below 65 and three consecutive bearish candles.
- It also requires the share price to equal 18.5 yuan.
- The document provides formulas and implementation references without reporting strategy performance.
- A fixed share-price condition may exclude companies and does not measure valuation on its own.
- The screen does not account for broad market risk, fundamentals, or industry trends.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.