Chinese Stock Screen Using RSI, Large-Order Flow, and a Sharp Intraday Decline

Summary

This Chinese A-share screening idea combines an RSI below 65 with positive alignment between percentage price change and net buying volume from very large orders. It also selects stocks whose largest decline during the day falls between 4% and 5%, treating that drop as a possible short-term pullback. The accompanying example code expresses these filters, but the post offers no backtest, performance data, or detailed rules for how signals become trades.

The author says the screen omits company fundamentals and may be affected by broader market conditions and industry developments. Suggested improvements include adding financial measures, assigning different weights to stocks, and adapting the screen to market and sector conditions. These are suggestions rather than tested enhancements. The strategy is therefore a basic technical and order-flow screen, and its stated rationale does not establish that the selected stocks will rebound or that the filters have predictive value.

Key ideas

• The screen requires RSI below 65 and a positive product of price change and net large-order flow.
• It selects stocks with a maximum intraday decline between 4% and 5%.
• The post frames the intraday decline as a short-term adjustment that may create a screening opportunity.
• The author identifies missing fundamental analysis and changing market or industry conditions as limitations.

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