Mainland China Stock Screen Using RSI, Daily Gains, and Prior Low

Summary

This stock-picking screen selects mainland Chinese main-board shares with a 14-period RSI below 65, a daily gain above 1%, and a close above the previous day’s low. The document presents these conditions as a way to combine short-term price strength with a check that price has held above a recent low. It includes formula and Python examples, but does not report a backtest or performance evidence.

The article cautions that the screen omits fundamentals and capital flows, and that historical patterns may not persist. It suggests broadening the inputs with volatility, valuation, dividend, growth, market capitalization, and flow measures, then applying risk controls and diversification. The selection rule is only an initial filter; the document does not define entries, exits, or position sizing, nor show that the proposed refinements improve results.

Key ideas

• The screen requires RSI(14) below 65 and a daily gain greater than 1%.\nIt limits the universe to main-board stocks and requires the close to exceed the previous day’s low.\nThe article offers implementation examples but no reported backtest results.\nIt identifies missing fundamentals and capital-flow data as limitations.\nIt recommends adding risk controls and diversification when applying the screen.

Tags

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