Screening Chinese Stocks with RSI, KDJ, and Profit Growth

Summary

This stock-selection approach combines technical conditions with a profitability filter. It screens for stocks with a 14-period RSI below 65, KDJ K below 20, and parent-company net profit growth between 20% and 100%, while also requiring positive net profit. The stated rationale is to find shares with relatively weak or oversold recent price action but growing earnings, where a rebound may be possible. The article includes example database-query logic and a Python outline that calculates indicators and ranks qualifying names by market capitalization.

The document presents a screening hypothesis, not evidence of tested returns: it gives no backtest results, holding rules, or portfolio construction details. It cautions that technical pattern judgments can be subjective, that other fundamental measures such as leverage and ROE are omitted, and that the screen may miss strong growth stocks during rising markets. Data-field definitions and the example K calculation may also differ across platforms, so reproducing the screen requires checking the underlying series and indicator conventions.

Key ideas

• The screen combines RSI below 65 and KDJ K below 20 with positive net profit growth from 20% through 100%.
• The proposed rationale is that weak or oversold price action paired with earnings growth may identify rebound candidates.
• The article provides both database-query logic and a Python-style outline for computing and filtering candidates.
• The strategy description does not provide backtest results, entry and exit rules, or portfolio construction details.
• The screen omits other fundamentals and may lag strong stocks in rising markets.

Tags

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