A-Share Stock Screening with RSI, Order Flow, and Concentration

Summary

This proposed A-share screen combines RSI below 65 with price change and net large-order flow, then applies a concentration measure. The article frames the inputs as technical, money-flow, and distribution factors: RSI is intended to avoid highly overbought stocks, while order flow and concentration are presented as signs of buying interest and ownership distribution. It suggests adding indicators such as MACD and adjusting concentration thresholds across market environments.

The stated concentration rule is internally contradictory: it describes a value at least 70 and at most 20 percent, so no observation can satisfy both conditions as written. The provided Python filter repeats those incompatible bounds, and its order-flow condition is only a positive product of price change and a circulation measure rather than a clearly specified ranking. The article warns that concentration filters may exclude stable large companies or admit speculative stocks. It gives no backtest results or evidence of profitability.

Key ideas

• The proposed screen combines RSI below 65 with price change and large-order net flow.
• A concentration measure is included to represent ownership distribution, but its stated lower and upper bounds cannot both be met.
• The code examples do not clearly implement a coherent concentration or order-flow ranking rule.
• The article recommends adapting thresholds and adding other technical, sector, fundamental, and portfolio considerations.
• It cautions that concentration filters can exclude established firms or select stocks driven by speculation.

Tags

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