Chinese Stock Screen Combining RSI, Order Book Imbalance, and MACD

Summary

This Chinese equity screening idea combines RSI below 65, greater displayed buying volume than selling volume, and a rising MACD signal line, called DEA in the post. It interprets these conditions as signs of moderate RSI, stronger buying interest, and a potentially improving trend. The article supplies indicator references and sample screening code, including an RSI period of 14 and standard MACD parameters, but it gives no backtest, performance figures, or other empirical evidence.

The post cautions that the screen omits information about large investor flows and that a short-term rise in DEA may not persist. It proposes adding other MACD features and measures of capital flows or holdings. There is also a mismatch between the prose and examples: the Python snippet tests a MACD crossover rather than simply requiring DEA to rise, and its variable naming does not clearly correspond to the stated DEA condition. The screen should therefore be treated as a technical hypothesis; it does not establish that selected stocks are undervalued or likely to continue rising.

Key ideas

• The stated screen requires RSI below 65, displayed bid volume above ask volume, and a rising DEA line.
• The post treats these conditions as signs of buying pressure and a potentially improving trend.
• It warns that short-term indicator gains may not persist and that capital flows are omitted.
• The sample Python code checks a MACD crossover, which differs from the stated rising-DEA rule.
• No backtest or performance evidence is provided.

Tags

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