RSI and Moving Average Filters for Chinese A-Share Selection

Summary

This stock screen combines a 14-period RSI ceiling, a minimum listing history of one year, and a condition that the 20-day moving average is above the 120-day average. It aims to find stocks whose longer trend is rising while their recent price action is not strongly overbought. The page also includes example indicator logic and a Python-style implementation outline.

The article explains that moving averages can mislead for fast-changing or highly volatile companies, and recommends adapting periods by stock or industry and considering other indicators, market conditions, and financial information. It provides no backtest, performance figures, or evidence that the filter produces profitable trades. The examples also contain discrepancies: the written listing-age rule is not clearly implemented in the sample, and formula comparisons vary between inclusive and strict thresholds. Treat the screen as an illustrative filter rather than a validated strategy.

Key ideas

• The screen requires RSI at or below roughly 65 and a 20-day average above the 120-day average.
• It excludes stocks with less than one year of listing history.
• The intended setup pairs a rising longer-term trend with a moderate recent RSI reading.
• Moving-average rules may be less informative for rapidly changing or volatile companies.
• The article gives no performance testing and its sample implementation does not consistently match the stated conditions.

Tags

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