Combining RSI, Earnings Growth, and Recent Price Spikes for Stock Selection

Summary

This Chinese stock screen combines three conditions: a 14-period RSI below 65, year-over-year growth in net profit attributable to parent shareholders above 20% and no more than 100%, and at least one daily gain of 10% or more during the previous 25 trading days. The article frames the mix as a short-term selection approach, pairing a technical measure with an earnings filter and evidence of a recent sharp price move. Its reference implementation also excludes unprofitable, suspended, and specially treated shares, and describes sorting candidates by market capitalization.

The rationale is that moderate RSI may leave room for a rebound, earnings growth may indicate improving fundamentals, and a large recent gain may signal market interest. These claims are presented as a screening thesis, not as demonstrated performance: no backtest results or comparative evidence are supplied. The article cautions that short-term price surges can reflect speculation and that earnings expectations, sentiment, and policy changes can shift. It suggests adding other fundamental and technical measures and emphasizes risk controls and asset allocation, while leaving those refinements unspecified.

Key ideas

• The screen requires RSI below 65 and parent-attributable net profit growth between above 20% and 100%.
• It also requires at least one daily gain of 10% or more in the preceding 25 trading days.
• The article presents the combination as a short-term stock selection method without reporting performance tests.
• Recent sharp price moves may be driven by speculation, while earnings and market conditions can change.
• The author suggests broader indicators and risk controls as possible refinements.

Tags

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