Stock Screening with RSI, Seven Down Days, and Sustained ROE

Summary

This Chinese-language post describes an equity screen combining a relative strength index below 65, seven consecutive down sessions, and return on equity above 15% for each of five consecutive years. It presents the RSI and price streak as technical filters for stocks that have recently weakened, then uses sustained ROE as a quality filter. The post also gives indicative formulas and a Python example for assembling the screen from market and financial data.

The article reports no backtest, performance results, or evidence that the selected stocks subsequently rise. It flags reliance on historical prices and the accuracy of financial statements, and notes that a five-year ROE requirement may exclude otherwise promising companies. It suggests broadening the screen with valuation, other technical or capital-flow measures, and liquidity checks. The code example is illustrative; the document does not establish that its data calls calculate every condition reliably or consistently.

Key ideas

• The screen requires RSI below 65 and seven consecutive sessions where the close is no higher than the open.
• It further requires ROE above 15% in each of five consecutive years.
• The method combines technical filters with a multi-year profitability criterion.
• The post supplies no performance evidence and warns about historical-data and accounting-quality risks.

Tags

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