Chinese Stock Screening with RSI, Revenue Growth, and Limit-Up Frequency

Summary

This stock screen combines a technical filter, a revenue comparison, and prior limit-up activity. It selects shares with a 14-period RSI below 65, revenue in 2021 more than 1.1 times revenue in 2018, and at least three limit-up sessions within 500 days. The article gives example formulas and Python-style implementation guidance, but it does not report backtest results or evidence that the screen predicts returns.

The accompanying discussion cautions that frequent limit-ups may reflect speculative trading, revenue growth alone says little about profitability, and RSI can give misleading short-term signals. It suggests adding other technical and fundamental measures or adjusting the limit-up filter, though these changes are not evaluated. The examples also differ in their treatment of the revenue condition, so the implementation would need careful checking against the stated screening rules before use.

Key ideas

• The screen combines RSI below 65 with revenue growth between 2018 and 2021 and repeated limit-up sessions.
• The final selection rule calls for at least three limit-ups in a 500-day window.
• Limit-up frequency can reflect speculation and does not by itself establish business quality.
• Revenue growth does not account for costs, while RSI may produce unreliable short-term signals.

Tags

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