Chinese A-Share Screen Combining RSI, Seven Down Days, and Large-Order Flow

Summary

This Chinese stock-selection proposal screens mainland A-share main-board stocks using three conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and a threshold on the product of the day’s price change and an unusually large order flow measure. It presents the combination as a way to pair a technical filter with an indication of trading activity. The article also gives indicator and Python examples, but the examples do not consistently implement the stated rules: the seven-day code checks a different condition, and the volume calculation is not the described large-order net flow measure.

The author warns that a flow-focused screen may overlook company fundamentals and suggests adding liquidity and fundamental criteria or adjusting indicator weights. No backtest, performance data, or evidence that the proposed threshold predicts returns is provided. The setup is therefore best read as a screening idea, with data definitions and implementation needing independent review before use.

Key ideas

• The proposed screen combines RSI below 65 with seven consecutive down sessions and a large-order flow condition.
• The article restricts its intended universe to main-board Chinese stocks.
• The supplied code does not clearly match the stated seven-day and order-flow conditions.
• The author identifies weak fundamental analysis as a key limitation and suggests adding other factors.

Tags

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