Stock Screening with Price Range, Limit-Up History, and RSI

Summary

The article proposes screening Chinese stocks using three technical conditions: daily high-low amplitude above 1%, at least two limit-up events over a 500-day window, and a 14-period RSI below 65. It supplies indicator formulas and a Python-style example intended to retrieve historical prices, count limit-up events, calculate RSI, and check average amplitude. The implementation’s amplitude calculation uses an average across observations, which differs from a strict daily threshold, so the code does not exactly match the written rule.

The rationale is to combine historical sharp advances and price movement with an RSI ceiling. However, the article provides no backtest results or evidence that the screen identifies profitable opportunities. It notes that the conditions are technical-only, may admit noise, and omit company fundamentals. It suggests combining them with other indicators or financial measures and adjusting the filters to market conditions; the screen is a candidate-selection rule rather than a complete trading system.

Key ideas

• The proposed screen requires amplitude above 1%, at least two limit-up events in the 500-day lookback, and RSI below 65.
• The sample code approximates these conditions, but its average-amplitude check differs from the stated daily rule.
• The document offers no empirical performance evidence and warns that the technical filters may produce noisy selections.
• Fundamental measures and additional trend indicators are suggested as possible supplementary filters.

Tags

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