Screening Chinese Stocks with RSI, Limit-Up History, and a Rising Moving Average

Summary

This Chinese stock-selection rule looks for shares with RSI below 65, at least two limit-up events within the past 500 days, and a rising 30-day moving average. The note presents the combination as a way to identify stocks with a favorable recent price pattern while avoiding the highest RSI readings. It includes a brief formula and a Python example, but neither establishes that the conditions forecast future returns.

The author points out that moving averages lag price changes, technical-only screening can miss valuation and company risks, and the rule may be too simple to account for other influences. Possible additions include more technical indicators, multiple moving averages, and fundamental measures. The Python example also applies extra filters for earnings, valuation, and market board, so its implementation extends beyond the three conditions in the stated rule. No backtest results or evidence for the proposed filters are supplied.

Key ideas

• The stated screen requires RSI below 65, at least two limit-up events in 500 days, and an upward-sloping 30-day average.
• The note provides formula and Python examples but reports no performance evidence.
• Moving averages can lag, while technical filters alone may overlook fundamental or valuation risks.
• The Python example adds earnings, valuation, and board filters beyond the main rule.
• Suggested extensions include additional indicators, multiple averages, and fundamental data, but these are not evaluated.

Tags

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