Combining RSI, Earnings Growth, and Rising Lows in a Stock Screen

Summary

This Chinese equity screen combines a technical condition with earnings growth and a price-structure filter. It selects stocks with a 14-period RSI below 65, parent-company net profit growth above 20% and at most 100%, and a rising-low pattern. The post frames the mix as a way to find relatively weak shares that may have rebound potential while still showing earnings growth. Its sample analysis also describes excluding unprofitable companies and sorting candidates by market capitalization.

The document offers SQL-like and Python examples, but no historical test, return series, or comparison with a benchmark. It cautions that the RSI threshold is subjective, rising lows can be difficult to classify, and broad market risk can overwhelm individual signals. It suggests testing a narrower RSI band, adding balance-sheet measures, and checking the bottoming signal with other indicators. The examples may not calculate accounting growth or technical conditions consistently, so the screen needs data and implementation checks before research conclusions can be drawn.

Key ideas

• The screen requires a 14-period RSI below 65 and parent-company net profit growth between above 20% and 100%.
• It uses rising lows as a price-structure condition intended to indicate a possible upward turn.
• The rationale combines weaker recent price momentum with positive earnings growth.
• The post suggests adding leverage measures and confirming bottoming signals with other indicators.
• It gives no backtest evidence and notes that market conditions can limit the screen's usefulness.

Tags

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