Chinese Stock Screen Combining RSI, Order Flow, and Profit Growth

Summary

This document describes a Chinese stock-selection screen using three conditions: a 14-period RSI below 65, an outside-volume to inside-volume ratio above 1.3, and year-over-year parent-company net profit growth above 20% and no greater than 100%. The approach combines a technical indicator, a volume-based measure of trading activity, and a fundamental growth filter. The post supplies example formula and Python snippets, including exclusions for some risk-designated stocks.

The stated rationale is to find stocks with favorable trading conditions and earnings growth. The author cautions that the broad profit-growth interval may admit weaker companies, rising prices can continue on sentiment even as fundamentals remain unchanged, and portfolio size or weights should account for industry and liquidity. The post proposes further review of valuation, growth quality, and business safety. It offers no backtest or performance evidence, and the examples rely on data definitions and calculations that require validation before use.

Key ideas

• The screen requires RSI below 65, an outside-to-inside volume ratio above 1.3, and bounded year-over-year net profit growth.
• It combines technical, trading-activity, and fundamental filters.
• The examples show formula and Python approaches and include exclusions for risk-designated stocks.
• The author warns that the growth interval can include lower-quality firms and that price momentum may outlast changes in fundamentals.
• No empirical results are provided, and data definitions should be checked before implementation.

Tags

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