Screening for Low RSI, Seven Down Sessions, and Positive Auction Net Buying

Summary

This Chinese equity screen combines three conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and positive net buying attributed to major participants during the opening auction. The article presents the combination as a short-term technical setup and provides formula and Python examples. Its code also applies additional filters, including exchange and market-capitalization constraints, so those implementations are more restrictive than the headline rule.

The document offers no backtest results or evidence that the conditions forecast returns. It notes that technical filters can miss company fundamentals and unexpected adverse news, and suggests adding indicators and financial measures. The data definitions and code implementation for auction flows are not fully established in the article, so the screen's reproducibility and the meaning of its net-buying signal require independent verification.

Key ideas

• The headline screen requires RSI below 65, seven down sessions, and positive opening-auction net buying.
• The article treats the setup as short-term and primarily technical.
• Its Python example adds exchange and market-capitalization filters beyond the headline conditions.
• The author recommends considering fundamental information alongside technical indicators.
• No backtest or predictive-performance evidence is supplied.

Tags

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