Chinese Stock Screening with RSI, Profit Growth, and a Lower Low

Summary

This stock selection method combines a 14-period RSI below 65 with positive parent-company net profit growth between 20% and 100%, and a current daily low below the previous day’s low. The article describes screening for eligible Shanghai-listed shares, excluding suspended and specially treated stocks, then sorting candidates by market capitalization. It frames the setup as a short-term search for a possible rebound, based on moderate RSI, earnings growth, and a recent lower low.

The document explains the rationale for each filter and gives formula and Python examples, but it provides no backtest, return figures, or evidence that the rebound premise works. Its own caveats include short-term focus, potential manipulation, and the risk of missing stocks with genuine upside. It suggests adding further financial measures and considering broader market conditions. The supplied examples also have inconsistencies, so their implementation details should be checked before use.

Key ideas

• The screen requires 14-period RSI below 65 and parent-company net profit growth from above 20% through 100%.
• It also selects stocks whose current low is below the prior day’s low.
• The article interprets the combined conditions as a possible short-term rebound setup.
• It cautions that the criteria may overlook company fundamentals, long-term prospects, and manipulation risks.

Tags

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