A-Share Stock Screening with RSI, Order-Flow Ratio, and Reversal Pattern

Summary

This A-share screening idea combines an RSI below 65 with an external-to-internal trading volume ratio above 1.3 and a reversal or engulfing pattern. The article also describes filtering for a positive but bounded ten-day price change and checking recent short-interval price and volume data. It presents these conditions as a way to select stocks with supportive technical signals, though the implementation details do not consistently match the stated selection logic.

The note cautions that a technical-only screen can miss fundamental information and that RSI, order-flow ratios, and reversal patterns can produce misleading signals. It suggests adding valuation and profitability measures and adapting filters to market conditions. No systematic backtest evidence is supplied for the described combination, so its effectiveness and robustness are unclear.

Key ideas

• The proposed screen uses RSI below 65, an external-to-internal volume ratio above 1.3, and a reversal pattern.
• The accompanying example also filters recent price gains and monitors short-interval prices and volume.
• Technical indicators can be distorted by false signals and may misclassify reversal patterns.
• The article recommends supplementing technical signals with fundamental measures and market context.

Tags

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