A-Share Screen Using RSI, Order-Flow Ratio, and Price Shape

Summary

This A-share screening idea combines an RSI reading below 65, a ratio of outside to inside trading volume above 1.3, and a rounded price pattern. The accompanying explanation interprets a rounded shape as a possible period of easing price swings and stabilizing market sentiment, while acknowledging that recognizing the shape involves judgment. It suggests adding fundamental, industry, market-rotation, and other technical factors, or testing additional chart patterns.

The article includes example code, but its implementation does not clearly reproduce every stated condition: it checks RSI and a recent sequence of rising closes as a proxy for the rounded shape, without implementing the outside-to-inside volume ratio. It offers no backtest results or evidence that the screen predicts returns. The strategy is presented as a candidate selection rule, with risks of subjective pattern classification, differing results across timeframes, and overfitting. Its claims about risk and return should therefore be treated as hypotheses to test, not established properties.

Key ideas

• The proposed screen combines RSI below 65 with an outside-to-inside volume ratio above 1.3 and a rounded price pattern.
• The article treats the rounded pattern as a sign of potentially stabilizing price action, but its interpretation is subjective.
• Its sample code approximates the shape with three rising closes and does not implement the stated volume-ratio condition.
• The article recommends adding other market and company measures, while warning about timeframe sensitivity and overfitting.

Tags

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