Stock Screen Combining RSI, Three Consecutive Down Days, Volume, and a Gap Up

Summary

This proposed Chinese stock screen looks for an RSI below 65, three consecutive bearish sessions, current trading volume above 10,000 lots, and an opening price more than 2% above the previous close. It pairs a momentum oscillator and recent price weakness with volume and a gap-up condition, aiming to find stocks where buying interest may be emerging after several declining sessions. The document includes indicator formulas and sample Python logic for applying the conditions.

The screen is presented as a selection rule, not as a tested trading strategy. No returns, benchmark comparison, or validation results are provided. The text notes that volume and opening gaps can be distorted by market sentiment or misleading trades, and that the rules omit longer-term company fundamentals. It suggests adding context such as turnover, average volume, financial information, and market conditions to reduce false signals, but does not specify or test those additions. The sample rules should also be checked for consistency with the intended definition of three consecutive down days before use.

Key ideas

• The screen combines RSI below 65 with three consecutive bearish sessions.
• It adds a volume threshold and an opening gap above the previous close.
• The sample implementation gives a way to express the conditions but reports no performance evaluation.
• The document identifies misleading volume or gaps and missing fundamental context as limitations.

Tags

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