Chinese Stock Screening with RSI, Market Capitalization, and Rising KDJ

Summary

This Chinese equity screen selects stocks with RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, and a positive day-over-day change in the KDJ K value. The article explains RSI as a measure related to recent overbought or oversold conditions and KDJ as a price-movement indicator. Its intended combination uses a market-size band and two technical conditions to filter candidates.

The article cautions that the screen omits company fundamentals and broader market conditions, and that short holding horizons and KDJ lag may make signals unreliable or late. It suggests adding fundamental and market variables, but does not define or test those extensions. No backtest, trade rules, or performance results are supplied. The example implementation and accompanying description also contain inconsistencies in how K-value change and scoring are expressed, so the precise ranking procedure is unclear; the stated screening conditions are the clearest account of the proposed method.

Key ideas

• The screen requires RSI below 65 and circulating market capitalization from 5 billion to 10 billion yuan.
• It also requires the KDJ K value to rise from the prior observation.
• The article notes that technical-only screening overlooks company fundamentals and market conditions.
• KDJ lag and overly short selection periods are identified as possible weaknesses.
• The suggested added factors are not specified or tested, and the document provides no performance evidence.

Tags

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