Combining Residual RSI, Earnings Growth, and Limit-Down Signals

Summary

This A-share stock screen combines a technical condition with reported earnings growth and a price shock. It calls for RSI below 65, year-over-year parent-company net profit growth above 20% and no more than 100%, and a prior-day 9:15 matching price at the daily limit down. The stated rationale is to identify growing businesses whose shares have recently fallen sharply. The article also suggests adding valuation and other price indicators for broader analysis.

The document provides example SQL and Python, but the examples do not consistently implement the stated screen: the SQL uses a profit comparison across periods and a closing-price drop, while the Python calculates profit growth with a simple percentage change and approximates low prices with a close-price rank. The article gives no backtest evidence for profitability. It warns that a limit-down event may be temporary and RSI alone cannot capture a stock’s full price behavior, so the screen should be treated as a selection idea rather than a validated strategy.

Key ideas

• The proposed screen combines RSI below 65 with bounded year-over-year parent-company net profit growth and a prior-day limit-down matching price.
• The article frames the sharp price decline as a way to find potentially low-priced growth stocks.
• It recommends considering additional valuation and technical measures for a broader assessment.
• The sample implementations differ from the stated conditions, and the document reports no performance validation.

Tags

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