Stock Screening with RSI, Three Consecutive Down Days, and Turnover

Summary

This Chinese equity screening note proposes filtering for a 14-period RSI below 65, three consecutive declining sessions, and turnover between 3% and 12%. It combines a momentum oscillator, recent downward price movement, and a liquidity condition. The accompanying discussion frames the turnover range as a way to favor stocks with some trading activity while using the price and RSI conditions to identify candidates for further review.

The note acknowledges that technical indicators and liquidity alone omit fundamentals and broader market risks. It recommends adding company and market-risk factors, and adapting conditions to changing market states. No backtest, sample, or performance results are supplied. The formula and Python examples also appear inconsistent with the stated three-day condition, so the intended timing and implementation should be clarified before evaluation.

Key ideas

• The screen specifies RSI below 65, three consecutive down days, and turnover between 3% and 12%.
• It combines a technical oscillator and recent price direction with a liquidity filter.
• The author notes that technical and turnover conditions do not account for fundamentals or all market risks.
• The examples appear inconsistent with the stated three-consecutive-day rule.
• The note provides no backtest results or evidence of profitability.

Tags

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