Screening Stocks by RSI, Market Capitalization, and Seven Down Days

Summary

This stock selection approach screens for securities with an RSI below 65, a stated circulating market capitalization range of 5 to 10 billion yuan, and at least seven consecutive declining sessions. It combines a momentum oscillator, company size, and recent price direction to identify candidates. The article also sketches a basic ranking based on RSI and the consecutive decline count, but it does not provide performance results or a backtest.

The author cautions that the screen excludes company fundamentals and may behave poorly in sideways markets, where a losing streak need not continue. The threshold for consecutive declines can also affect which stocks qualify. Suggested extensions include adding market and fundamental context, other technical and volume measures, and potentially machine learning. The included implementation details appear inconsistent: the code checks a different capitalization range from the prose and counts declines across fewer comparisons than the stated seven-day rule. The screening criteria therefore need careful verification before use.

Key ideas

• The proposed screen combines RSI below 65, a market capitalization range, and a prolonged declining streak.
• The article describes seven or more consecutive down days as the price condition.
• It warns that technical screening alone omits fundamentals and may misfire in sideways markets.
• The code example appears inconsistent with the stated capitalization range and decline-count rule.
• No backtest or evidence of profitability is provided.

Tags

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