A Short-Term Rebound Screen Using RSI, Order-Book Volume, and Drawdown

Summary

The document describes an A-share stock screen intended to find possible short-term rebounds. It combines a 14-period RSI below 65, first-level bid volume greater than ask volume, and a stated daily maximum decline between 4% and 5%. The accompanying explanation interprets the RSI and decline conditions as signs of weakness or adjustment, while the bid-to-ask volume comparison is treated as a comparatively optimistic sentiment signal. The text suggests adding industry, operating, financial, and price-trend information as further filters.

The source gives formula and Python examples, but their details are inconsistent with the stated rule: the displayed inequality cannot describe a value between negative 4% and negative 5% as written, and the code’s drawdown calculation is positive while it is compared with negative thresholds. It also does not provide a backtest, performance evidence, or a precise definition of the intraday maximum decline or order-book volume fields. The proposed rebound interpretation is therefore a hypothesis, and the document itself warns that a selected stock may continue falling.

Key ideas

• The proposed screen combines RSI below 65, bid-side volume greater than ask-side volume, and a daily decline near 4% to 5%.
• The rationale treats the price decline as a possible rebound setup and stronger bid volume as a sentiment cue.
• The displayed inequality and code do not consistently implement the stated decline range.
• No backtest or performance results are supplied, and the screen omits fundamental information.
• The source suggests adding company fundamentals and trend analysis to refine selection.

Tags

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