Chinese Stocks Filtered by RSI, Limit-Up History, and Opening Gap

Summary

This stock screen combines three conditions: a 14-period RSI below 65, at least two limit-up sessions within the past 500 days, and a change in price by 9:25 a.m. below 6%. The article presents the early quote as a signal of the day’s opening direction and market sentiment. It describes stocks with prior limit-up sessions as having greater market attention, while the RSI threshold is intended to filter for stocks that may have more stable profit potential.

The post provides a screening formula and a Python example that filters a current stock list using these conditions. It gives no backtest, performance figures, or evidence that the signals predict returns. The author notes that the screen omits company fundamentals and industry conditions, and that reliance on RSI can be problematic in volatile markets. The narrow time-based condition may also make results unstable. Suggested improvements include adding technical, fundamental, and industry measures and adjusting the trading time to market conditions.

Key ideas

• The screen requires RSI below 65 and at least two limit-up sessions in the preceding 500 days.
• It excludes stocks whose 9:25 a.m. price change is 6% or more.
• The post treats early price movement as a rough indicator of opening sentiment.
• The article offers no backtest or evidence of strategy returns.
• It cautions that the screen omits fundamentals and may be less reliable in volatile markets.

Tags

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