Combining RSI, Profit Growth, and Rising KDJ for Chinese Stock Selection

Summary

This A-share stock screen combines a technical condition with reported earnings growth. It selects stocks with RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and a rising K value in the KDJ indicator. The example also restricts circulating market capitalization to a stated range of 5 billion to 10 billion yuan. The document frames the combination as a way to seek stocks with both technical strength and improving fundamentals.

The screen is accompanied by illustrative SQL and Python examples, but no backtest or measured performance evidence. The discussion notes that relying on a few indicators can overlook other market conditions and company fundamentals, and that KDJ may lag price moves. It suggests adding valuation and other technical or market measures, while acknowledging that the basic filter may select firms with weak longer-term prospects or other risks. The examples and indicator definitions would require checking against consistent point-in-time data before evaluation.

Key ideas

• The screen requires RSI below 65 and parent-company net profit growth above 20% and at most 100%.
• It also requires the K value of KDJ to be rising.
• The example limits circulating market capitalization to 5 billion through 10 billion yuan.
• The document warns that KDJ can lag and that the selected indicators omit other relevant information.
• No backtest results are supplied, and the sample implementation needs validation.

Tags

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