Stock Screening with RSI, Beverage Import-Export Industry, and KDJ Crossovers

Summary

This note describes a Chinese equity screening rule that combines three filters: RSI below 65, membership in the beverage and alcohol import-export industry, and a newly formed KDJ bullish crossover. It explains the indicators as technical conditions and industry classification as an additional selection criterion. Reference formulas and Python-style examples show how to calculate RSI and KDJ and apply the filters. The examples differ in how they define a fresh crossover: the formula uses a crossover test, while the Python condition checks only whether K is above D.

The article warns that these conditions do not account for broader market conditions or industry themes, and that a KDJ crossover may not predict subsequent price movement. It suggests adding other technical measures, company fundamentals, and market capitalization or earnings filters. No backtest results or performance evidence are provided, so the rule is presented as a screening idea rather than a validated trading strategy.

Key ideas

• The screen requires RSI below 65, beverage and alcohol import-export industry membership, and a KDJ bullish crossover.
• The article provides indicator formulas and sample filtering logic for implementing the screen.
• Its formula and Python example use different definitions of a newly formed KDJ crossover.
• The author notes that technical and industry filters cannot capture all market conditions or guarantee future gains.
• Additional technical and fundamental filters are proposed, but no performance testing is reported.

Tags

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