Screening Stocks with RSI, Three Down Days, and Board Exclusion

Summary

This Chinese equity screening proposal combines a 14-period RSI threshold below 65, a three-session candle pattern, and exclusion of stocks on the STAR Market. It frames the filters as a way to identify stocks based on price behavior while avoiding a market segment described as uncertain. The article suggests adding trading volume and fundamental factors, and periodically revisiting the criteria as market conditions change.

The document offers sample indicator expressions and Python-style screening logic, but no backtest, performance figures, or evidence that the exclusions reduce risk. There is also a material inconsistency: the prose calls for three consecutive down days, while the sample condition compares prior closes as greater than prior opens, which identifies up candles. Other example conditions include placeholder filters, so the implementation is incomplete. The article itself notes that excluding an entire board may discard promising companies and that technical filters may overlook fundamentals.

Key ideas

• The proposed screen uses a 14-period RSI below 65 and excludes STAR Market stocks.
• The written strategy requires three consecutive down days, but the sample candle comparison appears to test up days.
• The article recommends considering volume and fundamental information alongside technical conditions.
• No performance evidence is provided, and broad market-segment exclusion may omit suitable stocks.

Tags

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