Combining RSI, Earnings Growth, and a Five-Day Average for Stock Selection

Summary

This A-share screening approach combines a technical filter with an earnings-growth condition. It selects stocks with a 14-period RSI below 65, year-over-year growth in parent-company net profit above 20% and no more than 100%, and an average price above its five-day moving average. The accompanying examples outline ways to calculate these filters from price and financial data.

The explanation presents the RSI threshold as a way to avoid overbought conditions, earnings growth as a profitability signal, and the moving-average comparison as evidence of favorable recent price direction. It does not provide backtest results or performance evidence, and the code examples may not implement the stated logic consistently: one growth calculation uses a period change rather than explicitly comparing the same period year over year. The article also notes that the screen omits valuation and other balance-sheet measures, and that a strict moving-average condition can exclude candidates.

Key ideas

• The screen requires a 14-period RSI below 65 and parent-company net profit growth above 20% but at most 100%.\nIt also requires average price to be above its five-day moving average.\nThe approach combines technical price conditions with an earnings-growth filter.\nThe article warns that the screen omits valuation and other financial health measures.\nNo backtest evidence is given, and the code’s growth calculation may differ from the stated year-over-year criterion.

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