Mainland China Stock Screen Using RSI, Daily Gains, and Moving Averages

Summary

This stock-selection screen targets main-board shares using three technical conditions: RSI below 65, a daily gain above 1%, and the 20-day moving average above the 120-day average. The article frames the conditions as combining a moderate RSI reading, positive daily momentum, and a longer-term trend filter. It also describes ranking eligible names by stock heat, though the stated selection logic does not explain how heat affects the strategy’s returns.

The article provides example SQL and Python-style selection logic, plus general suggestions to consider further indicators, fundamental growth measures, and risk controls such as stop-loss and profit-taking rules. It cautions that technical conditions depend on market sentiment, moving-average relationships can lose effectiveness as markets change, and restrictive filters may exclude candidates. No backtest, return series, benchmark comparison, or detailed transaction assumptions are supplied, so the expectation of excess returns is not supported by evidence in the document. The examples also differ slightly on whether the 20-day average must be strictly greater than or may equal the 120-day average.

Key ideas

• The screen selects main-board stocks with RSI below 65 and a daily gain above 1%.
• It requires the 20-day moving average to exceed the 120-day moving average in the stated rule.
• The examples describe sorting candidates by stock heat.
• The article suggests adding fundamental measures and explicit risk controls.
• No performance testing is provided, and the sample implementations differ on the moving-average comparison.

Tags

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