Chinese Stock Screening with RSI, Float Market Value, and Control Ratio

Summary

This Chinese stock-screening proposal selects shares using three conditions: RSI below 65, tradable market value between 5 billion and 10 billion yuan, and a same-day control ratio above 21 percent. The accompanying Python example calculates RSI over 14 periods and defines the control ratio from the stock’s close and high relative to the previous close. If at least five stocks qualify, it ranks them by daily percentage change and returns the five strongest.

The article frames RSI as a measure of price strength, market value as a way to avoid very small companies, and the control ratio as an estimate of the balance between buyers and sellers. It cautions that the daily ratio may be difficult to obtain accurately and that relying on a few filters can overlook important factors. It suggests combining additional indicators and adapting filters to market conditions. No backtest results or evidence of profitability are provided, and the proposed interpretation of the control ratio is not validated in the text.

Key ideas

• The screen combines RSI below 65, a specified tradable market-value range, and a control ratio above 21 percent.
• The example computes RSI over 14 periods and derives the ratio from high, close, and prior close.
• When enough stocks pass, the example ranks candidates by daily percentage change.
• The article warns that control-ratio data may be inaccurate and that a small set of filters can be misleading.
• It recommends considering additional indicators and changing filters with market conditions.

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