RSI and Prior Limit-Down Auction Stock Screen

Summary

This A-share screening idea combines a 14-period RSI below 65 with recent candle patterns and a prior-day 9:15 auction price at the lower price limit. The stated rationale is to find stocks showing technical weakness alongside a notable premarket signal. The document also suggests adding volume or other indicators, machine-learning methods, and fundamental measures as possible refinements.

The description has an important internal inconsistency: its prose calls for three consecutive declining sessions, but the formula checks for three prior bullish candles and a bullish current candle. It gives no backtest, performance evidence, entry or exit rules, or treatment of transaction costs. The proposed screen therefore remains underspecified, and its warning about overfitting and short-term volatility is relevant. Auction-price data and limit-price rules may also require careful interpretation when implementing the signal.

Key ideas

• The proposed screen combines RSI below 65 with a prior-day opening-auction price at the lower limit.
• The prose describes three declining sessions, while the provided formula checks bullish candles.
• The document proposes adding volume, other technical indicators, or fundamental measures.
• It presents no performance testing and flags overfitting and short-term volatility as risks.

Tags

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