A Stock Screen Using RSI, Order Book Volume, and Seven Down Days

Summary

This Chinese-language post describes a stock selection screen combining three conditions: a 14-period RSI below 65, best-bid volume greater than best-ask volume, and seven consecutive declining sessions. The rationale is to find stocks that have recently weakened while showing comparatively stronger buying interest at the top of the order book, with the hope of identifying a rebound. The post includes illustrative formula and Python snippets for calculating the indicators and selecting candidates.

The author characterizes the screen as a simple blend of technical and market-sentiment signals, and explicitly notes that these conditions have limited ability to predict broader market trends and do not fully assess a stock’s investment value. Suggested improvements include adding market structure and fundamental data, keeping inputs current, and adjusting for market and investor conditions. The document offers a screening hypothesis, not evidence of tested returns: it supplies no backtest results, benchmark, transaction-cost analysis, or precise definition of the seven-day condition. Order book volume is also a time-sensitive snapshot, so the screen alone does not establish that a rebound is likely.

Key ideas

• The screen requires RSI below 65, best-bid volume above best-ask volume, and seven consecutive down sessions.
• The proposed rationale is to combine a weak recent price pattern with stronger displayed buying volume.
• The post gives formula and Python examples but does not report backtest performance.
• The author warns that the criteria are narrow and may not capture the market trend or a stock’s fundamentals.
• Order book volume and other inputs need current data, and the screen alone does not confirm a likely rebound.

Tags

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