Chinese Stock Screening with RSI, Bollinger Bands, Market Cap, and ROE

Summary

This Chinese stock-screening note describes selecting equities with RSI below 65, a circulating market value between 5 billion and 10 billion yuan, and a closing price above the Bollinger middle band but below the upper band. The article presents the range as a way to combine a technical condition with a market-cap filter, then says to add ROE as a fundamental factor. It includes formula and Python examples using RSI and 20-period Bollinger bands, and the sample selection routine ranks qualifying stocks by percentage change before taking up to five.

The note provides no backtest, performance statistics, or evidence that the screen predicts returns. It cautions that technical and market-cap filters omit company finances and competitive conditions, and suggests adding profitability, valuation, or other indicators. Implementation details differ across examples: the Python routine also filters total shares and ranks by daily change, while the stated final logic mentions ROE without showing how to calculate or apply it.

Key ideas

• The proposed screen combines RSI below 65 with a mid-to-upper Bollinger Band closing price.
• It restricts candidates to a stated circulating market-cap range of 5 billion to 10 billion yuan.
• The article proposes adding ROE and other fundamental measures to broaden the selection criteria.
• The examples include indicator calculations and a sample ranking process but provide no performance validation.

Tags

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