Screening Stocks with RSI, Market Capitalization, and Rising EMAs

Summary

This Chinese-market stock screen combines three conditions: RSI below 65, tradable market capitalization between 5 billion and 10 billion yuan, and upward alignment of the 5-, 10-, 20-, and 30-period exponential moving averages. The accompanying Python example computes RSI, applies the capitalization and indicator filters, and, when at least five stocks qualify, orders candidates by previous close and selects up to five whose daily change is below 9.9 percent.

The source presents the screen as a technical selection idea and warns that it omits fundamentals and industry factors. It also notes that the rising-average condition may be sensitive to data and that relying on a narrow set of indicators can affect results. Although the post suggests adding other indicators and factors, it supplies no backtest, return figures, or evidence that the selected stocks outperform; the screen is a candidate-selection recipe rather than a complete trading plan.

Key ideas

• The screen requires RSI below 65 and market capitalization from 5 billion to 10 billion yuan.
• It defines upward moving-average alignment as EMA5 above EMA10, EMA10 above EMA20, and EMA20 above EMA30.
• The example selects up to five qualifying stocks after ranking by previous close and filtering daily change.
• The author cautions that technical filters omit fundamental and industry information and may be sensitive to data.

Tags

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