Screening Shenzhen Stocks with RSI, Seven Down Days, and Valuation Limits

Summary

This Chinese-language post proposes a stock screen combining a relative strength index below 65, seven consecutive sessions in which the close is no higher than the open, and valuation bounds. It targets Shenzhen main-board stocks with price-to-earnings ratios between zero and 29.01 and price-to-book ratios between zero and 3.11. The accompanying example describes retrieving market, price-history, and financial data, applying the conditions, and sorting selected names by price-to-earnings ratio.

The post presents no historical backtest, performance evidence, or portfolio construction rules, so the screen’s effectiveness is unverified. Its discussion notes that valuation data can change with markets, policy, and industry conditions, and that broad accounting ratios may miss company-specific details. It recommends considering additional financial, governance, industry, and technical factors, but does not define or test those additions. The strategy is therefore a set of screening conditions rather than a complete entry, exit, or risk-management system.

Key ideas

• The proposed screen combines RSI below 65 with seven consecutive down sessions.
• It restricts candidates to Shenzhen main-board stocks within stated price-to-earnings and price-to-book ranges.
• The example ranks qualifying stocks by price-to-earnings ratio after checking price and financial data.
• The post supplies no backtest or evidence that the selection rules produce returns.
• Valuation ratios and technical conditions may omit important company, industry, and market risks.

Tags

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