Stock Screening with RSI, Mid-Cap Float, and Arc-Shaped Price Patterns

Summary

This Chinese-language post describes a stock screen combining three conditions: a 14-period RSI below 65, floating market capitalization between 50 billion and 100 billion yuan, and a price pattern labeled an arc. The accompanying Python example calculates RSI from closing prices and approximates the shape condition using the difference between two moving averages, then standardizes that difference. When enough candidates pass the filters, the example sorts them by percentage change and selects the top five. The post does not provide performance results or evidence that the pattern definition predicts returns.

The author cautions that technical indicators and visual patterns alone may select companies with weak fundamentals, and that arc-shaped patterns can be subjective or hard to define consistently. Suggested refinements include reviewing fundamentals, industry prospects, and macroeconomic conditions, alongside additional technical checks and human review. The RSI calculation and moving-average proxy are implementation examples; the post does not establish that they faithfully identify an arc or validate the screen through backtesting.

Key ideas

• The screen combines RSI below 65, a specified floating-market-cap range, and an arc-shaped pattern.
• The example estimates the pattern using standardized differences between two moving averages.
• Candidates that pass the filters are ranked by percentage change before selection.
• The post offers no backtest or performance evidence for the screening rules.
• The author recommends checking fundamentals and reviewing the subjective pattern classification.

Tags

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