RSI and Daily-Gain Screen for Non–Star Market Main Board Stocks

Summary

This short-term stock selection rule looks for non–Star Market main-board shares with a 14-period RSI below 65 and a daily price gain above 1%. The document also describes excluding certain special-treatment and suspended stocks and sorting candidates by market capitalization. It presents the screen as a way to find shares showing a recent gain without an RSI reading above its threshold, but it supplies no backtest results or evidence that the conditions predict profitable trades.

The discussion warns that reacting to short-term price moves can encourage chasing gains or selling into declines, while leaving company fundamentals and long-term value largely unexamined. It also cautions against assuming that all Star Market shares are risky or all main-board shares are safe. Suggested additions include fundamental measures such as cash flow, valuation, and profit growth, along with volatility-based risk filters and explicit risk controls.

Key ideas

• The rule selects non–Star Market main-board stocks with 14-period RSI below 65 and daily gains above 1%.
• The example implementation also describes excluding special-treatment and suspended stocks and ranking by market capitalization.
• The document presents no backtest or return evidence for the screen.
• Short-term price filters may encourage chasing moves and do not establish a company’s long-term value.
• Suggested additions include fundamental measures, volatility filters, and risk controls.

Tags

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