Screening for Recent Limit-Ups with Moderate RSI and Listing History

Summary

The screen selects Chinese stocks with RSI below 65, more than one year since listing, and more than two limit-up sessions in the prior ten days. It combines a momentum or market-attention filter with a cap on the RSI reading and an eligibility rule for listing age. The article also sketches formula and Python implementations.

The rationale is that repeated limit-ups may indicate strong market interest, while the RSI threshold avoids the most overbought names and the listing-age rule excludes very new firms. The document warns that the screen depends heavily on short-term sentiment and can stop working when that sentiment fades or unusual events move prices. Its code examples and formula may not implement the written criteria consistently, so the screen requires careful validation; no performance evidence is provided.

Key ideas

• The screen combines an RSI ceiling with a minimum listing age and repeated recent limit-up sessions.
• The author treats limit-up frequency as a proxy for market attention and momentum.
• The strategy is exposed to shifts in sentiment and other short-term market shocks.
• The examples provide screening logic but no backtest or performance evidence.

Tags

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