A-Share Screening with RSI, Trading Flow, Moving Averages, and ROE

Summary

This document presents a Chinese A-share screening idea combining technical signals with a basic profitability filter. The stated criteria include RSI below 65, an external-to-internal trading volume ratio above 1.3, and at least five moving averages converging or ordered in a bullish configuration. The example Python outline also checks recent return, data availability, and whether ROE reached a specified threshold in any of the five reported periods. The text interprets a sub-65 RSI as avoiding an overbought condition and the volume ratio as a sign of buying pressure.

The article recommends adding company financial analysis and using other indicators or chart measures to broaden the screen. It provides no backtest, benchmark, transaction-cost analysis, or evidence that the criteria predict returns. The code and narrative also differ in places: the screen’s listed moving-average condition is described as overlap, while the sample code checks that moving averages are successively ordered. The trading-flow ratio’s calculation and data conventions are not explained, so the screen would need careful validation before practical use.

Key ideas

• The proposed screen combines RSI below 65 with an external-to-internal trading volume ratio above 1.3.
• It includes a condition involving five moving averages, although the example code checks their ordering rather than defining overlap.
• The sample also filters for recent positive returns below 35% and an ROE threshold in at least one of five periods.
• The article suggests combining technical indicators with company financial analysis.
• No backtest or performance evidence is provided, and the data definitions require validation.

Tags

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