Screening Chinese A-Shares with RSI, KDJ, and Earnings Growth

Summary

This stock-selection approach combines technical signals with a profitability filter for Chinese A-shares. It looks for positive net profit growth of more than 20% and up to 100%, an RSI below 65, and a newly formed KDJ golden cross. The example SQL also applies universe filters, excludes certain listings, requires the opening price to be above its 10-day moving average, and sorts candidates by market capitalization. A Python sketch presents a similar selection process.

The rationale is that a KDJ cross and price above the moving average may indicate strengthening price action, while moderate RSI and earnings growth filter for stocks with momentum and improving fundamentals. The document does not provide historical performance, a benchmark, or transaction-cost analysis. Its risk discussion notes that industry prospects, capital structure, broad market conditions, and policy changes are not captured; the accompanying Python calculation of growth also may not match the stated year-over-year financial measure.

Key ideas

• The screen combines RSI below 65 with positive net profit growth above 20% and no greater than 100%.
• A newly formed KDJ golden cross is used as a technical indication of strengthening price action.
• The example also requires the opening price to exceed its 10-day moving average and applies A-share universe filters.
• The approach is not supported by reported backtest results and omits several business and market risks.
• The Python example's profit-growth calculation may not represent the stated year-over-year accounting metric.

Tags

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