Screening Main-Board Stocks with RSI and a Two-Day High

Summary

This post presents a short-term Chinese equity screen that requires a 14-period RSI below 65, a daily gain above 1%, main-board eligibility, and a closing price at the highest level over a two-day window. It combines a momentum condition with a limited breakout signal while using RSI to avoid stocks at higher indicator readings. Example formulas and Python-style code illustrate how the filters might be applied.

The post warns that this technical screen gives little weight to fundamentals and may encourage chasing short-term moves; the two-day high condition may also leave very few candidates. It recommends considering company financials and risk measures, but does not provide a backtest, return data, or evidence that the suggested refinements improve results. The code is illustrative, and the stated market eligibility and timing should be verified against the data source before use.

Key ideas

• The screen requires RSI below 65, a daily gain above 1%, main-board status, and a two-day closing high.
• It combines short-term momentum with a brief breakout condition.
• The post identifies fundamental neglect and potential overtrading as risks.
• The strict price-high filter may produce few selections.
• No performance evidence is supplied for the screen or its proposed refinements.

Tags

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