Chinese Stock Screening with RSI, Trading Heat, and a Morning Price Cap

Summary

This Chinese stock screen combines a 14-period RSI below 65, a ranking by individual-stock heat, and a limit on the 9:25 a.m. price gain of less than 6%. The article describes the heat ranking as a way to prioritize relatively active stocks and presents the opening price cap as a guard against selecting stocks after an excessive short-term rise. Its Python example adds further filters based on trading data, including market capitalization and volume, then ranks qualifying names by three-month volume.

The method is described as a technical and activity-based screen rather than a complete investment process. The article acknowledges that it omits fundamental information and may misjudge valuation or miss promising shares; it suggests adding measures such as price-to-earnings or price-to-book ratios. It provides no backtest, performance statistics, or evidence that the screening thresholds improve returns. The example’s extra filters and use of opening-price data also mean its implementation is not identical to the concise selection statement.

Key ideas

• The stated screen requires RSI below 65, a 9:25 a.m. gain below 6%, and ranking by stock heat.
• The accompanying example uses three-month volume as a heat proxy and includes additional market-capitalization and volume filters.
• The approach relies on technical and activity data and does not assess company fundamentals.
• The author suggests adding valuation measures, but reports no backtest or evidence of improved performance.

Tags

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