Screening Mid-Capitalization Stocks with Low RSI and Three Down Days

Summary

This article describes an equity screen requiring a 14-period RSI below 65, three consecutive declining sessions, and a circulating market value between 5 and 10 billion yuan. The stated rationale is to find stocks showing short-term weakness while retaining a minimum size range. Its sample logic also ranks qualifying stocks by percentage change, although the article does not clearly explain how that ranking fits the weak-price setup. The formulas and Python example illustrate how to combine the conditions.

The document reports no backtest, benchmark, or realized returns, so it does not establish that this screen identifies a rebound or offers an advantage. It warns that policy and industry conditions are not considered, and that stocks with substantial declines may carry longer-term risk. It recommends adding other indicators and company analysis, then combining quantitative filters with market and fundamental judgment. These are suggestions rather than tested enhancements; the rules alone provide no entry timing, exit plan, or position sizing.

Key ideas

• The screen combines RSI below 65, three consecutive down sessions, and a circulating market value range of 5 to 10 billion yuan.
• Its rationale is to identify short-term weakness in stocks of a specified size.
• The example sorts qualifying names by percentage change, without explaining the ranking’s role in the setup.
• No performance evidence is provided, and the screen omits policy, industry, and longer-term company risks.

Tags

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