Screening Stocks for Low RSI After Seven Down Days Above the Five-Day Average

Summary

This document presents a Chinese stock screening rule that combines RSI below 65, seven consecutive sessions in which the close is no higher than the open, and a latest price above its five-day moving average. It frames the conditions as a way to identify a recent decline while checking that price remains above a short-term average. It also supplies indicator references and sample screening code, including additional filters such as exchange, market capitalization, and listing-board exclusions.

No backtest or return evidence is provided. The document warns that the rule focuses mainly on technical data and may miss company, policy, or industry risks. It suggests adding fundamental measures and other indicators, but does not specify how to combine them. The code and prose also leave ambiguities: “average price” is represented by close versus moving average, and some data calls and filters may not directly match the stated rule. Treat the examples as an outline requiring validation, not as a tested strategy.

Key ideas

• The core screen requires RSI below 65, seven consecutive down sessions, and price above the five-day moving average.
• The consecutive down days are defined in the example as closes no higher than opens.
• The document provides sample code with extra market and capitalization filters.
• It gives no empirical performance evidence and warns that fundamental and policy risks are omitted.
• The code’s price definition and data handling should be checked against the intended rule.

Tags

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