Screening Chinese Stocks with RSI, Weekly Moving Average Crossovers, and Valuation

Summary

This Chinese language post describes a stock selection screen combining technical and fundamental filters. It selects stocks with RSI below 65, circulating market capitalization between 5 billion and 10 billion yuan, and a weekly five period moving average crossing above the ten period average. The final stated logic also limits the price to earnings ratio to 40. The post’s example implementation then sorts candidates by prior close and selects up to five stocks, subject to a daily price change filter.

The rationale is to combine a momentum or trend condition with market size and valuation constraints. The post gives indicator definitions and code references, but it does not provide a backtest, benchmark, sample period, transaction cost assumptions, or performance evidence. It cautions that indicator and valuation filters can omit relevant industry or company factors, and that moving average crossovers lag price changes. The screen is therefore a candidate selection recipe, not evidence of a profitable strategy; its stated implementation details also do not fully establish how weekly signals are timed or traded.

Key ideas

• The screen combines an RSI ceiling with a weekly moving average crossover and market capitalization bounds.
• The final stated selection rules also cap the price to earnings ratio at 40.
• The example ranks qualifying stocks by prior close and applies an additional daily price change filter.
• The post warns that moving average crossovers can lag and that industry factors may be overlooked.
• No backtest evidence or trading cost analysis is supplied.

Tags

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