Chinese Stock Screen Using RSI, Float Value, and Large-Order Flow

Summary

This Chinese-market stock screen selects shares with RSI below 65, circulating market value between 5 billion and 10 billion yuan, and large-order net volume above 0.05 for at least three consecutive days. The article explains that RSI is used to constrain short-term momentum conditions, market value narrows the company size range, and the net-volume measure is intended to represent capital flows. It gives indicator formulas and Python reference logic for calculating RSI and net volume, then applying the filters.

The article cautions that the screen relies heavily on technical inputs and may omit company fundamentals. It also notes that large-order net volume can be an imperfect proxy for actual money flows, and suggests considering valuation, earnings growth, and changes in net volume. No backtest, returns, benchmark, or validation evidence is reported, so the screen’s effectiveness and stability are not established. The stated thresholds describe the proposed rules, not demonstrated performance.

Key ideas

• The screen requires RSI below 65 and circulating market value within the stated range.
• It also requires large-order net volume above 0.05 for at least three consecutive days.
• The article provides formulas and example logic for computing RSI and net volume.
• It warns that technical filters omit fundamentals and that net volume may not reliably represent capital flows.
• No backtest or performance evidence is presented.

Tags

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