A Chinese Stock Screen Using RSI, Large-Order Flow and Turnover

Summary

This Chinese stock-selection proposal combines a relative strength index below 65 with a condition involving price change multiplied by net large-order volume, then filters for prior-day turnover above 60 million. It frames the RSI and order-flow measure as technical inputs and turnover as a liquidity or activity filter, aiming to identify shares with favorable recent technical behavior and active trading. The accompanying example code also applies positive price-to-book and price-to-earnings filters and an intraday time condition, so it does not fully implement the stated selection logic.

The post gives no backtest, holdings, or measured return and risk evidence. It acknowledges that the screen omits company fundamentals and may perform poorly when market direction is unclear or trading activity is weak. It suggests adding fundamental, market and industry variables, weighting stocks, or combining other technical indicators, but does not evaluate those changes. The proposal is therefore a screening idea, not a demonstrated strategy, and its signals and implementation would need validation.

Key ideas

• The proposed screen uses an RSI below 65, a price-change and large-order-flow condition, and a prior-day turnover threshold.
• The post presents turnover as a way to favor more actively traded shares.
• The sample code adds valuation and time filters that are absent from the stated screen.
• The author identifies missing fundamental analysis and changing market conditions as limitations.
• No backtest or performance evidence is provided.

Tags

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