Weekly Trend and RSI Screen for Mid-Capitalization Stocks
Summary
This note outlines a Chinese equity screen combining RSI, free-float market capitalization, and a weekly moving-average trend signal. It selects stocks with RSI below 65, free-float market value between 5 billion and 10 billion yuan, and a weekly close crossing above its 30-week moving average. RSI is used to limit the strength of recent momentum, the size band narrows the universe, and the weekly crossover is meant to indicate a longer-term upward trend.
The article identifies important limitations: it does not incorporate company fundamentals, market conditions can change, and short-term implementation may incur unnecessary trading costs. It recommends combining the screen with financial, cash-flow, governance, and industry analysis. A Python example is included, but it relies on questionable data fields for RSI and market capitalization and does not establish predictive performance. No backtest or empirical results are reported, so the stated criteria are an illustrative screening idea rather than a validated investment method.
Key ideas
- The screen requires RSI below 65 and free-float market capitalization from 5 billion to 10 billion yuan.\nIt also requires a weekly price crossover above the 30-week moving average.\nThe weekly signal is intended to capture a longer-term upward trend, while RSI constrains momentum.\nThe note advises adding fundamental and cash-flow analysis because the screen is primarily technical.\nThe example code and strategy have no reported backtest or performance validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.