A-Share Screen Combining RSI, Large-Order Flow, and Profit Growth

Summary

This article proposes screening Chinese equities using three kinds of signals: RSI below 65, the product of price change and the net ratio of very large order flow above 1, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and up to 100%. The stated aim is to combine a technical condition, a flow measure, and company earnings growth. The accompanying Python example adds filters such as excluding ST stocks, positive valuation ratios, a falling latest close, and negative cumulative price change over three days.

The article offers no performance data or evidence that these filters reduce downside risk. It notes that profit growth alone is limited, data may be incomplete or inaccurate, and fundamentals may not capture price movements. It recommends considering additional profitability, competitive, market, and technical information. The text does not define the order-flow metric or explain how its inputs are normalized, so the screen's implementation and interpretation require further verification.

Key ideas

• The proposed screen combines RSI below 65, a price-change and large-order-flow condition, and bounded annual profit growth.
• The example code adds exclusions and price-trend filters beyond the stated core rule.
• The article identifies data quality and reliance on a single earnings measure as risks.
• No backtest or other performance evidence is presented, and the order-flow calculation is not defined.

Tags

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