Selecting Main-Board Stocks with RSI, Daily Gains, and Prior-Day Limits

Summary

This post outlines a simple Chinese stock screening rule: select main-board shares with RSI below 65, a gain above 1% on the current day, and no limit-up move the prior day. The stated rationale combines a possible rebound signal from RSI, short-term strength from the daily gain, a main-board universe filter, and avoidance of stocks that surged to the daily limit in the previous session. It also includes example query logic and a Python reference, though the code introduces extra size, valuation, and data-handling filters that are not part of the central rule.

The post offers no backtest, performance statistics, or evidence that the screen produces excess returns; that outcome is presented only as an expectation. It acknowledges that the logic is subjective, parameters may need adjustment, and historical patterns may fail around unforeseen events. The implementation examples should be checked carefully before use, since their data dates and filters do not fully align with the stated selection rule.

Key ideas

• The screen combines an RSI threshold, a positive daily move, a main-board universe, and a prior-day limit-move exclusion.
• The proposed rationale mixes oversold reversal potential with short-term price momentum.
• The article supplies query and Python examples, but the Python reference adds filters beyond the core rule.
• No backtest or measured evidence supports the expected excess return, and the post flags parameter and event risks.

Tags

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