Screening Chinese Stocks with RSI and Seven Bearish Sessions

Summary

This stock screening idea combines an RSI reading below 65 with seven consecutive sessions in which the close is below the open, while excluding the intended board category. The article presents the sequence of bearish sessions as a sign of weakness and the RSI threshold as a way to avoid stocks it considers overbought. It also suggests adding financial quality checks, industry or market-cap filters, and other indicators, and tuning RSI parameters through historical testing.

The document provides sample formulas and Python, but the implementation has apparent inconsistencies: the code skips stocks when all seven sessions meet the bearish condition, and its exclusions appear to cover another board as well. These issues make the sample unsuitable to rely on as written. No backtest results are reported, and the article acknowledges that the screen omits company fundamentals and may miss potential candidates.

Key ideas

• The proposed screen combines RSI below 65 with seven consecutive bearish sessions.
• The article intends to exclude a specified Chinese stock board, though the sample code appears to exclude an additional board.
• The sample implementation reverses the stated seven-session condition by skipping stocks that satisfy it.
• The author recommends testing RSI settings and adding financial, industry, or other technical filters.
• The document supplies no performance results, and the screen does not evaluate fundamentals as presented.

Tags

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