Screening Chinese Stocks with RSI, Daily Gains, and the 250-Day Average

Summary

This stock-selection screen combines three technical conditions: a 14-period RSI below 65, a daily gain greater than 1%, and a closing price above the 250-day moving average. It limits the universe to main-board stocks. The accompanying rationale treats RSI as a gauge of market sentiment, the daily gain as a short-term strength signal, and the long moving average as a filter for the longer-term trend. The example code also ranks qualifying names by their distance above the 250-day average and selects the top ten.

The document provides no backtest results or evidence that the rules generate returns. It warns that the screen omits fundamentals and may miss industry and policy influences, and that changing market conditions can make the selection logic ineffective. It suggests incorporating further technical and fundamental measures and emphasizes risk controls and diversification. The written rule refers to yesterday’s price relative to the moving average, while the accompanying examples mix current and prior-day conditions, so implementation details are not fully consistent.

Key ideas

• The screen requires RSI below 65, a daily rise above 1%, and price above the 250-day moving average.
• It restricts candidates to main-board stocks and ranks qualifying stocks by their distance above the average.
• The document presents RSI, daily price change, and the moving average as sentiment, short-term strength, and long-term trend filters.
• No performance evidence is supplied, and the screen excludes fundamentals and broader market drivers.
• The example implementations differ on whether the moving-average condition applies to the prior day or current day.

Tags

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