Chinese Stock Screening with RSI, Free-Float Value, and Lower Lows

Summary

This stock-selection rule screens for Chinese equities with a 14-period RSI below 65, a circulating market value between 50 and 100 billion, and a current low below the previous day's low. The accompanying explanation presents RSI as a gauge of overbought or oversold conditions, uses market value as a size filter, and treats a lower low as a signal for identifying possible price opportunities. A Python example also ranks qualifying observations by percentage change and returns up to five symbols when enough candidates are present.

The document provides formulas and sample code, but no backtest, return, or risk statistics to support the proposed interpretation. A lower low alone does not demonstrate an upward trend, and the text's characterization of that condition as evidence of strength is not substantiated. The author notes that the screen omits financial condition and industry context, and suggests combining technical indicators with fundamental measures as possible extensions.

Key ideas

• The screen requires RSI below 65, circulating market value from 50 to 100 billion, and a low below the prior day's low.
• The example ranks qualifying observations by percentage change and selects up to five symbols when at least five qualify.
• The document presents RSI as an overbought or oversold measure but supplies no performance evidence.
• It warns that technical filters omit company fundamentals and industry differences.

Tags

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