A-Share Stock Screen Combining RSI, Order Flow, and Declining Closes

Summary

The document outlines a Chinese stock-selection screen combining RSI below 65, an external-to-internal trading-volume ratio above 1.3, and a run of seven declining daily closes. It frames the combination as a way to find stocks that have weakened steadily and might rebound. Sample implementation material checks RSI, estimates the volume ratio, and filters for a monotonic decline in closing prices. The headline instead says the ratio should exceed 1, creating an inconsistency with the stated selection logic.

The author warns that fixed consecutive-decline rules may overlook fundamentally strong stocks and may perform poorly in a bull market. Suggested adjustments include adding another technical indicator, adapting criteria to market conditions, and incorporating fundamental filters. No backtest, return figures, or evidence of rebound performance is presented, so the proposed opportunity is a hypothesis rather than a demonstrated result. The screen is specifically described in the context of Chinese equities.

Key ideas

• The proposed screen combines RSI below 65, an external-to-internal volume ratio above 1.3, and seven consecutive declining closes.
• The headline gives a ratio threshold above 1, which conflicts with the body and implementation's threshold above 1.3.
• The rationale is to find stocks with persistent weakness that may rebound.
• The source warns that a fixed decline streak can miss candidates and may be unsuitable in bull markets.
• No backtest or performance evidence is included, and the method is presented for Chinese stocks.

Tags

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