Screening Stocks by RSI, Price, and Recent Limit-Up Sessions

Summary

This stock-selection rule screens for shares priced below 12 yuan, with a six-period RSI below 65 and at least two limit-up sessions within a 500-day lookback. The document frames these conditions as a combination of a technical indicator, a low nominal share price, and evidence of strong prior price moves. It suggests that the screen could be broadened with fundamental measures such as market share, gross margin, or net profit.

The article supplies an indicator-formula reference but no backtest, portfolio rules, execution assumptions, or return evidence. Its explanation of the limit-up condition is not fully clear: the stated formula refers to a volume comparison and a daily price-change threshold, without unambiguously implementing a count of two events across the full lookback. A low share price alone does not establish that a stock is cheap, and the author acknowledges that the rule omits company fundamentals. The screen is therefore an initial filter, not a validated strategy.

Key ideas

• The proposed screen combines a six-period RSI ceiling, a nominal price ceiling, and recent limit-up activity.
• The article interprets prior limit-up moves as a sign of market attention or technical strength.
• A low share price does not by itself indicate low valuation.
• The formula reference does not clearly implement the stated count of limit-up sessions over the full lookback.
• The document gives no strategy performance evidence and recommends broader fundamental analysis.

Tags

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