RSI Below 65 with Three Down Closes and a Prior Limit-Up Exclusion

Summary

This Chinese stock-screening post describes a technical filter combining a 14-period RSI below 65 with three consecutive sessions in which the close is below the open. It also excludes stocks whose prior session gained at least 9.9% relative to the session before that, treating this as a way to remove recent limit-up stocks. The stated rationale is to find stocks undergoing a pullback while filtering some short-term speculative activity.

The post includes formula references for a Chinese stock platform and a Python example using market data libraries. It does not present performance results or test methodology. The author cautions that the screen relies on technical signals and market sentiment, omits fundamentals and industry characteristics, and may react to noise and short-term swings. Excluding recent limit-up stocks could also filter out stocks that continue to perform well. The post suggests combining technical, fundamental, and industry analysis, but does not specify or validate a combined model.

Key ideas

• The screen requires RSI below 65 and three consecutive bearish sessions.
• It excludes stocks with a prior-session gain of at least 9.9% over the preceding session.
• The post frames the filters as a way to search for pullbacks while avoiding some short-term speculative moves.
• The method omits fundamentals and industry information and may be sensitive to noise.
• The post provides implementation examples but no evidence of strategy performance.

Tags

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