Chinese Stock Screen Using RSI, Three Down Days, and Recent Limit-Ups

Summary

This document describes a short-term Chinese equity screening rule combining a 14-period RSI below 65, three consecutive sessions with the close below the open, and at least one recent limit-up event within roughly a month. Its stated aim is to find stocks with a recent sign of strong buying interest that have since shown several down sessions, using technical conditions and market sentiment together. It provides example indicator logic and Python-style screening steps, but no performance results or evidence that the rule has an edge.

The author warns that the screen emphasizes short-term price action and may select volatile or noisy stocks. It omits fundamentals and industry characteristics, and frequent pursuit of momentum may raise trading costs and risk. Suggested improvements include combining technical signals with fundamental and sector analysis, market context, and quantitative evaluation. The limit-up test in the examples is expressed through price comparisons, so its exact correspondence to exchange-specific limit rules is unclear; the document also does not define how to trade or manage positions after a match.

Key ideas

• The screen requires a 14-period RSI below 65 and three consecutive bearish candlesticks.
• A recent limit-up event is used as a sign of market interest.
• The document gives sample screening logic but reports no backtest or live-trading evidence.
• Fundamental, sector, and risk controls are identified as possible additions.

Tags

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