Screening Stocks with RSI Below 65 and Seven Consecutive Down Days

Summary

This Chinese stock screen selects shares with an RSI below 65, seven consecutive sessions in which the close is no higher than the open, and a positive current-day percentage change. The document presents the RSI formula in general terms and gives a Python example using market data to check the RSI, recent candle directions, and the latest return. The rule combines a momentum indicator with a prolonged run of weak daily candles and a positive return filter.

The source characterizes the screen as combining technical and fundamental considerations, but the listed conditions do not include a clear fundamental metric. It supplies no backtest, performance statistics, or evidence that the filters predict returns. The author notes that market uncertainty, factor weighting, and data quality can affect reliability, and suggests examining other factors such as momentum and sentiment. The implementation details and data calls would also need verification before use, especially because the example’s data range and latest-return date are fixed.

Key ideas

• The screen requires RSI below 65 and seven consecutive sessions with closes at or below opens.
• It additionally requires a positive percentage change on the current day.
• The stated conditions are technical filters, despite the document describing them as partly fundamental.
• No performance results or validation are presented.
• Market changes, data quality, and implementation choices may affect the screen’s reliability.

Tags

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