Chinese Stock Screen Using RSI, Three Down Sessions, and Opening Volume

Summary

This Chinese equity screening post combines a 14-period RSI below 65 with three consecutive down sessions and a volume-based condition involving yesterday’s turnover and today’s opening-auction activity relative to prior volume. The intended range for the volume measure is above 0.5 and below 2. The post presents the setup as a way to combine short-term price behavior with trading activity and liquidity considerations.

It provides indicator and Python examples, but their calculations do not clearly match the prose: the candlestick comparisons appear to test for up sessions, and the volume formula is expressed differently from the description. The article offers no backtest or performance evidence. It flags lag from relying on prior-day data and instability during volatile market sentiment, and suggests adding other technical, fundamental, industry, liquidity, or sentiment inputs. Treat the rule as an unvalidated screen and verify its definitions and implementation before use.

Key ideas

• The proposed screen requires RSI below 65 and three consecutive sessions described as down days.
• It adds a bounded condition based on prior turnover and opening-auction volume.
• The provided code appears inconsistent with the prose for both candle direction and the volume calculation.
• The post supplies no performance test and identifies lag and market-sentiment instability as risks.

Tags

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