RSI and Limit-Up Filters for Chinese Stock Selection

Summary

This Chinese equity screening idea combines an RSI threshold below 65 with a circulating market value between 5 billion and 10 billion yuan and more than two limit-up days in a 10-day window. The stated rationale is to find relatively strong short-term stocks while restricting the screen to a particular capitalization range. The article also mentions adding ROE as a fundamental filter, although it does not specify a cutoff or show how that addition changes the selection rules.

The document includes example indicator formulas and a Python-style screening outline. That outline uses a 9.7% daily-change threshold, includes a minimum total-share count, and selects up to five names ranked by change percentage. These implementation details do not exactly match every part of the prose, so the screening logic would need reconciliation before use. No backtest results or performance evidence are provided. The author notes that the screen largely overlooks company finances and competitive conditions, and that stocks with strong recent gains may be overheated or exposed to business risks.

Key ideas

• The screen combines RSI below 65, circulating market value from 5 billion to 10 billion yuan, and more than two limit-up days in 10 days.
• The stated aim is to identify stocks with strong recent price action within a specified capitalization range.
• The article suggests adding ROE and other financial or valuation measures, but gives no thresholds for them.
• The example implementation includes extra filters and slightly different limit-up details from the written description.
• The document gives no performance results and warns that recent momentum does not capture financial or competitive risks.

Tags

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