Screening Chinese A-Shares by RSI, Seven Down Days, and Popularity

Summary

This note describes a Chinese A-share screen requiring an RSI below 65 and seven consecutive sessions in which the close is no higher than the open, followed by a ranking based on a stock popularity measure. It outlines the intended use of technical conditions to identify candidates and popularity to order them, and includes illustrative indicator and data-processing references. The document does not report a backtest or performance evidence, so it does not establish that the screen predicts returns.

The author cautions that short-term technical signals can misclassify stocks and that popularity reflects market attention rather than fundamental value. Suggested refinements include adding other indicators and fundamental checks, validating the rules through backtesting, and adjusting parameters over time. The proposed use of RSI again to assess market “heat” is not clearly distinguished from the initial RSI threshold, and the example data fields and dates are implementation-specific. Results would depend on signal definitions, data quality, and trading costs.

Key ideas

• The screen requires RSI below 65 and seven consecutive down sessions.
• Eligible stocks are ranked by a popularity measure.
• Popularity indicates attention and does not establish fundamental value.
• The note recommends combining signals with fundamental analysis and backtesting.

Tags

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