Screening Chinese Stocks with RSI, Earnings Growth, and Weekly Bars

Summary

This stock screen combines a technical condition with profitability growth and a weekly indicator. It selects shares with RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and a positive weekly bar reading. The article frames the combination as a way to find relatively weaker stocks that may rebound while retaining earnings growth.

The document explains the intended rationale and provides example SQL-like and Python implementations, but it reports no backtest results or return evidence. It warns that the weekly-bar rule and RSI threshold involve judgment, that price volatility can make selections unstable, and that broad market conditions may overwhelm the signals. It suggests refining the weekly-bar conditions and adding financial measures such as leverage. The examples also differ in data handling and implementation, so the screen's exact behavior would depend on how the inputs and indicators are defined.

Key ideas

• The screen requires RSI below 65 and positive weekly bar readings.
• It filters for year-over-year parent-attributable net profit growth above 20% and at most 100%.
• The rationale pairs a relatively weak technical reading with positive earnings growth in search of rebound candidates.
• The article provides example implementations but no performance evidence.
• Subjective indicator rules and broad market risk may weaken the screen's reliability.

Tags

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