A-Share Screening with RSI, Order-Book Volume, and Institutional Flow

Summary

This stock-selection method combines a 14-period RSI threshold with order-book volume imbalance and an institutional-flow measure. The article first describes RSI below 65, bid-side volume above ask-side volume, and institutional direction above zero; its final screening rule tightens the RSI cutoff to below 60 and sets the flow threshold above 80 million. It presents the criteria as a way to identify relatively strong stocks, reasoning that the volume imbalance suggests optimistic sentiment and institutional flow indicates large-player direction.

The article supplies indicator formulas and example implementations, but reports no backtest, performance statistics, or evidence that the screen predicts returns. It cautions that technical signals omit company fundamentals, may react slowly to short-term moves, and depend on the quality of institutional-flow data. The final threshold differs from the initial description, so users should distinguish the stated initial criteria from the revised rule. The method is a screening proposal rather than a validated trading system.

Key ideas

• The final screen requires RSI below 60, bid-side volume greater than ask-side volume, and institutional flow above 80 million.
• The article initially describes a looser RSI cutoff and a zero institutional-flow threshold before revising them.
• It interprets order-book imbalance and institutional flow as signs of market sentiment and large-investor direction.
• The document gives no performance testing and identifies fundamental analysis and data quality as limitations.

Tags

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