Screening Chinese Stocks with RSI, Three Down Days, and Large Float
Summary
This Chinese equity screening recipe combines a 14-period RSI below 65 with three consecutive bearish candles and a circulating market value above 10 billion yuan. It pairs a technical condition intended to identify recent weakness with a size filter that favors more widely held companies. The document includes formula and Python examples, though the code is presented as a reference rather than a validated implementation.
No backtest results or performance evidence are reported. The article cautions that the screen omits broad market conditions and other evaluation factors, and that large market value does not establish profitability or growth potential. It suggests adding industry and market trends, valuation, sentiment, and measures of company earnings, while recognizing that further factors would still need evaluation.
Key ideas
- The screen requires a 14-period RSI below 65.
- It also requires three consecutive bearish candles and a circulating market value above 10 billion yuan.
- The article gives formula and Python examples but reports no historical performance test.
- Market conditions and company profitability are not captured by the stated filters.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.