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

Summary

This note outlines a screen for mainland Chinese stocks using three stated conditions: RSI below 65, a daily gain above 1%, and an upward-spreading moving-average pattern, with a restriction to main-board listings. Its rationale treats RSI as a measure of price conditions, the daily gain as evidence of near-term strength, and rising averages as a trend signal. The examples use recent price midpoints to compare portions of the price history, but the code and description do not define the moving-average pattern consistently. The Python example also adds asset, valuation, and listing filters that are absent from the headline rules.

No historical test, results, or evidence for excess returns is presented. The note cautions that technical signals can misread market conditions and recommends risk controls, further factors, and systematic tuning. Its explanation calls RSI below 65 oversold, but that threshold alone does not establish an oversold condition; the proposed combination should be evaluated on appropriate data before use.

Key ideas

• The proposed screen combines RSI below 65, a daily rise above 1%, and a rising-average condition.
• The universe is limited to main-board stocks, though the sample code adds other filters.
• The source describes its moving-average condition inconsistently across its examples.
• The document supplies no backtest or performance evidence and flags market and signal risks.
• An RSI below 65 alone does not establish that a stock is oversold.

Tags

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