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

Summary

This stock screen combines three conditions for Chinese A-shares: a 14-period RSI below 65, parent-company net profit growth between 20% and 100%, and a 20-day moving average above the 120-day average. The intended selection is profitable-growth companies whose RSI remains below the stated threshold while the shorter moving average is above the longer one. The document supplies SQL-style and Python examples for filtering securities, though the code also includes additional data and ranking steps.

The author describes the approach as a way to find growth stocks that are relatively weak but recovering, but provides no backtest results or evidence supporting that interpretation. The stated caveats are that the technical screen uses few indicators and the fundamental screen relies heavily on profit growth. Suggested additions include other trend and volatility indicators, valuation and return-on-equity measures, and industry comparisons. The examples and described screen may not align in every detail, so the selection logic should be verified before use.

Key ideas

• The screen requires RSI below 65, net profit growth between 20% and 100%, and the 20-day moving average above the 120-day average.
• The stated rationale combines a growth filter with a trend condition and an RSI threshold.
• The document provides example code but no backtest evidence or risk-adjusted performance results.
• The author warns that relying on few technical and fundamental measures can omit relevant information.
• Additional indicators, financial measures, and comparisons with peers are suggested as possible refinements.

Tags

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