A-Share Stock Screening with RSI, Order Flow, and Positive P/E

Summary

This document describes an A-share screening rule that combines a relative strength index below 65, an external-to-internal trading volume ratio above 1.3, and a positive price-to-earnings ratio. It presents the rule as a way to combine technical and fundamental conditions, and includes sample references for implementing the filter with market data and stock screening tools.

The article cautions that indicators can fail, financial data may be inaccurate, and industry or macroeconomic shifts can affect company earnings, valuations, and price trends. It suggests adding growth measures such as net profit or revenue growth, refining technical filters, and considering market and sector context. No historical performance, benchmark comparison, or risk-adjusted evidence is provided, so the screen should be treated as a selection recipe rather than a demonstrated profitable strategy. The title mentions a ratio above 1, while the detailed rule specifies above 1.3.

Key ideas

• The proposed screen requires RSI below 65, an external-to-internal volume ratio above 1.3, and positive P/E.
• The method combines technical indicators with a fundamental valuation condition.
• The article recommends incorporating earnings growth and revenue growth in further screening.
• Indicator failures, inaccurate financial data, and changing market conditions can undermine the filter.
• The document provides no backtest or evidence of realized returns.

Tags

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