Screening Chinese Stocks with Low RSI, Seven Bearish Sessions, and Turnover

Summary

This stock screen combines three conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and turnover between 3% and 12%. The article interprets the RSI threshold as avoiding highly overbought stocks, the repeated down sessions as evidence of selling pressure, and the turnover band as seeking moderate trading activity.

It presents no performance data or backtest results. The proposed rules are a technical screen, and the article cautions that they omit company fundamentals and that a suitable turnover range may vary by stock. It suggests adding fundamental checks, testing indicator settings against historical data, and adjusting turnover thresholds to each stock. One sample implementation also appears inconsistent with the stated seven-session rule, so the screen would need careful implementation and validation before use.

Key ideas

• The screen requires RSI below 65 and turnover from 3% to 12%.\nIt looks for seven consecutive sessions with closing prices below opening prices.\nThe article treats the RSI and turnover thresholds as screening choices, not evidence of profitability.\nIt recommends adding fundamental analysis and validating parameters with historical tests.

Tags

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