Momentum Stock Screen Using RSI, Rising DEA, and 10-Day Gains

Summary

This Chinese equity screen selects stocks whose 10-day gain is above zero and below 35%, whose RSI is below 65, and whose DEA line is rising. The post presents the rule as a technical screen intended for markets with a discernible trend. Its example references a 14-period RSI and MACD components, and the sample implementation adds filters such as exchange-code prefix and histograms above zero.

The document provides no backtest results, sample period, or comparison with other screens. It warns that focusing on recent gains can exclude other attractive stocks or neglect longer-term value, and that RSI alone does not capture a company’s prospects. It recommends combining technical signals with other indicators and market context. The code uses an average of daily percentage changes for the 10-day condition, which may not match a compounded 10-day return, so the implementation should be checked against the intended rule.

Key ideas

• The screen combines a positive but capped 10-day gain with RSI below 65 and a rising DEA line.
• The post suggests the rule may suit markets with a clear directional trend.
• RSI is presented as an incomplete measure that should be combined with other information.
• The sample code adds filters beyond the stated selection rule and may operationalize 10-day gains differently.

Tags

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