Screening Chinese Stocks by Amplitude, Float, and RSI

Summary

This stock selection rule combines three filters: price amplitude above 1, freely tradable share count no greater than 5.5 billion, and RSI below 65. The accompanying explanation treats amplitude as a way to find stocks with greater short-term price movement, the float ceiling as a small-cap screen, and the RSI limit as a way to avoid stocks considered overbought. The filters are intended to be applied together to produce a candidate list.

The document cautions that low-float shares may have weaker liquidity and larger price swings, while short-term indicators can overlook longer-term trends and company fundamentals. It suggests adding fundamental measures such as valuation ratios and considering a broader time range, with adjustments for industry and individual circumstances. It gives an RSI calculation concept and sample implementation references, but reports no backtest, trading results, or evidence that the thresholds are effective. The method is therefore a screening template, not a validated strategy; its signals and risk depend on data definitions, timing, and subsequent analysis.

Key ideas

• The screen requires amplitude above 1, float at or below 5.5 billion shares, and RSI below 65.
• Amplitude and RSI are used to select for short-term movement without a high RSI reading.
• The float threshold targets smaller companies, which may carry greater liquidity and price risk.
• The document recommends supplementing technical filters with fundamentals and a wider time perspective.
• No performance test is reported, so the thresholds are not validated as a trading strategy.

Tags

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