A-Share Screening with RSI, Order-Flow Ratio, and Rising Lows

Summary

The document describes a Chinese equity screening rule combining RSI below 65, an external-to-internal trading volume ratio above 1.3, and a rising price floor. Its example also filters for a positive but bounded ten-day price change, checks recent lows against the current price, and proposes adding valuation and earnings measures for broader assessment. The intended idea is to find shares with improving short-term price action and buying pressure while avoiding names that have already risen sharply.

The post provides indicator references and a sample data workflow, but no backtest, performance statistics, or evidence that the screen predicts returns. It cautions that technical indicators can become stale, false breakouts can mislead, and the order-flow ratio may be inaccurate. Data definitions and implementation details are not fully validated in the article, so the rules should be treated as an illustrative screen rather than a demonstrated strategy.

Key ideas

• The screen combines RSI below 65 with an external-to-internal trading ratio above 1.3 and rising lows.
• A sample implementation adds a positive, limited ten-day return filter and compares the current price with recent lows.
• The author suggests incorporating valuation and earnings information alongside technical signals.
• The post gives no measured backtest results and warns about stale signals, false breakouts, and order-flow measurement error.

Tags

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