Combining RSI, Earnings Growth, and Moving Averages for A-Share Selection

Summary

This document describes a Chinese A-share stock screen combining a technical condition, an earnings-growth filter, and price trend checks. The initial version selects stocks with RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and at most 100%, and a prior close above the 250-day moving average. Its final version adds checks that the prior close is also above the 30-, 60-, and 120-day moving averages.

The rationale is to pair a momentum or trend context with company profit growth. The article characterizes RSI below 65 as potentially offering an entry opportunity while prices above long moving averages indicate relative strength. It includes sample SQL and Python references, though the examples do not fully document data timing or accounting treatment. The stated risks include lagging moving averages, possible pullbacks after a stock has risen, financial data changes, and limited coverage of company fundamentals. It reports no backtest or performance results, so the proposed screen should be treated as a selection rule rather than evidence of an edge.

Key ideas

• The screen combines RSI below 65 with a bounded range of year-over-year parent-company net profit growth.
• The final rule requires the prior close to exceed the 30-, 60-, 120-, and 250-day moving averages.
• The approach pairs a company earnings filter with price trend conditions.
• The article warns that moving averages lag and selected stocks may face pullbacks.
• No backtest or performance evidence is provided.

Tags

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