An A Share Screen Combining RSI, Order Flow, and a Morning Star Signal

Summary

This Chinese equity screening note combines an RSI threshold with an external-to-internal trading volume ratio and a morning star pattern signal. Its prose gives an RSI ceiling of 65, a volume ratio above 1.3, and the pattern condition as criteria for selecting stocks. It includes an indicator formula and a Python-style example illustrating how such conditions might be combined.

The post characterizes the approach as using technical and trading activity signals, and flags the absence of fundamental analysis, the possibility of overfitting, and the risk that the pattern indicator misreads price behavior. It suggests adding other kinds of information and reviewing the rules through periodic backtesting. The title, however, mentions a volume ratio above 1, while the body specifies 1.3; the implementation example’s data fields and indicator calls are not validated in the text. No performance results are supplied, so the screen is an untested selection recipe rather than evidence of a stable trading edge.

Key ideas

• The proposed screen combines RSI, an external-to-internal volume ratio, and a morning star signal.
• The body specifies a volume ratio threshold of 1.3, which differs from the title.
• The post warns that pattern signals can be unreliable and that the rules may overfit.
• It recommends combining additional information and periodically reviewing the rules through backtesting.
• No backtest performance evidence is reported.

Tags

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