Chinese Stock Screening with RSI, Positive P/E, and an Opening Gain Cap

Summary

This document proposes screening stocks by requiring an RSI below 65, a positive price-to-earnings ratio, and a gain at the 9:25 opening stage below 6%. It presents the opening move as a way to exclude unusually sharp early advances, while RSI and valuation provide a technical and fundamental filter.

The article discusses risks from relying on short-term price behavior, including overlooking longer-term performance and potentially selecting few stocks in a strongly trending market. It also points out that the opening gain depends on how the reference price and calculation are defined. The sample formula and Python are illustrative but do not reliably establish that the stated RSI and P/E rules are correctly measured; the code's calculations and variable references appear inconsistent. No backtest or outcome data is provided, so the screen remains an unvalidated selection idea.

Key ideas

• The screen requires RSI below 65, positive P/E, and a 9:25 gain below 6%.
• The opening-move filter is intended to avoid stocks with large early advances.
• The calculation of the opening gain depends on the chosen reference price.
• The sample code does not demonstrate a reliable implementation, and no performance evidence is given.

Tags

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