Combining RSI, Earnings Growth, and a Weekly Moving-Average Crossover

Summary

The document outlines a Chinese A-share selection approach combining a technical condition, a fundamental growth filter, and a weekly trend signal. It looks for stocks with RSI below 65, parent-company net profit growth above 20% and no more than 100%, and a weekly close crossing above its 30-week moving average. The intended logic is to combine a moderate RSI reading and improving reported earnings with a possible trend reversal. Example database and Python snippets illustrate the proposed filters.

The author notes that market moves and changing financial reports can affect the screen, and that profit growth alone does not reveal balance-sheet or cash-flow health. The post recommends adding valuation and other financial measures and comparing multiple time horizons. It offers no backtest, trade exits, portfolio rules, or evidence that the conditions predict returns. The implementation examples also include details that do not fully match the stated rule, so the screening logic would need validation before use.

Key ideas

• The screen combines RSI below 65 with parent-company net profit growth in a specified positive range.
• It requires the weekly closing price to cross above its 30-week moving average.
• The method aims to combine reported earnings growth with a potential technical trend reversal.
• The author identifies incomplete financial analysis and changing market conditions as risks.
• The examples provide screening logic but no return evidence or full portfolio and exit rules.

Tags

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