Combining RSI, Three Rising Sessions, and Recent Limit-Up Frequency in a Stock Screen

Summary

This post proposes a Chinese equity screen using RSI below 65, three consecutive bullish sessions, and at least two limit-up events within a 500-day lookback. The author frames the combination as a way to select shares with favorable market sentiment and prior trading interest. Formula and Python examples accompany the stated rules, but their details do not reliably implement the described conditions: for example, the displayed three-session test checks prior candles, and the limit-up proxy is not a direct limit-up identification method.

The post warns that stocks with past limit-up moves can retreat and that these signals cannot reliably forecast future direction. It also notes that such a narrow filter may exclude otherwise attractive shares, and suggests incorporating additional sentiment and fundamental measures. No backtest results or evidence of returns are provided, so this is a screening hypothesis rather than a validated strategy.

Key ideas

• The screen requires RSI below 65, three bullish sessions, and at least two limit-up events over 500 days.
• The author presents past limit-up activity as a proxy for stock attention and market sentiment.
• The accompanying examples use imperfect proxies and do not clearly match all stated conditions.
• The post identifies reversal risk and warns that the filters may miss other promising stocks.
• No empirical performance evidence is given.

Tags

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