Mainland China Stock Screen Using RSI and Intraday Price Filters

Summary

This stock selection rule combines an RSI reading below 65, a daily gain greater than 1%, main-board listing status, and an intraday low between 4% and 5% below the reference level. The stated rationale is to find shares with possible rebound potential, positive short-term momentum, and a pullback that may offer value. The document includes sample SQL-like screening logic and Python code using market data and RSI calculations.

The material offers a rule description, not evidence that the screen earns excess returns: it supplies no reported backtest or outcome data. Its explanation also labels RSI below the threshold as oversold, although that reading alone does not establish a reversal. The article acknowledges that the fixed filters omit company fundamentals and industry conditions and may be overfit. It suggests broader technical and fundamental inputs, attention to market context, and risk controls such as stop losses and diversification. The code examples contain implementation choices that would need validation before use.

Key ideas

• The screen combines RSI below 65 with a daily gain above 1% and main-board status.
• It also filters for a daily low falling between 4% and 5% from the reference level.
• The proposed rationale mixes rebound potential, short-term momentum, and pullback selection.
• The document presents sample code but gives no performance results.
• It warns that omitted fundamentals and rigid thresholds can create risk and overfitting.

Tags

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