A-Share Screening with RSI, Order-Flow Ratio, and Three-Day Declines

Summary

This A-share screening proposal combines an RSI reading below 65, an outer-to-inner trading volume ratio above 1.3, and three consecutive declining closes. The article describes the conditions as a way to find stocks with weak recent price action that might rebound from oversold levels. It includes example formula and Python implementations, along with a suggested workflow for adapting a screening template.

The evidence is a description of the filter and example code; the document reports no backtest, performance figures, or validation. Its explanation of order flow is not fully consistent: it associates the volume ratio condition with selling pressure, although a higher outer-to-inner ratio is not itself evidence of greater selling pressure. The article also flags the narrow candidate set that three declines may produce, RSI sensitivity to sharp market moves, and the omission of company fundamentals. It suggests adding fundamental data and broader trend context, but does not specify how to test or combine those additions.

Key ideas

• The screen requires RSI below 65, an outer-to-inner volume ratio above 1.3, and three consecutive declining closes.
• The article presents the combination as a way to find weak recent price action that could precede an oversold rebound.
• It provides example formulas and Python code, but reports no backtest results or measured performance.
• The volume ratio interpretation is unclear, and the filter omits company fundamentals and broader market context.

Tags

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