Chinese Stock Screen Using RSI, Large-Order Flow, and the Five-Day Average

Summary

This proposed Chinese equity screen looks for stocks with RSI below 65, a positive interaction between percentage price change and net inflow attributed to very large orders, and a share price or average price above its five-day moving average. The document frames RSI as a way to avoid more overbought conditions and the flow measure plus moving average condition as indicators of recent strength. It suggests that additional technical measures and company fundamentals could be considered.

The article supplies example code, but does not define the flow metric in detail or present a backtest, selected-stock examples, or return evidence. It also notes that a price above a short moving average does not establish a lasting trend, and that order-flow measures can be affected by sudden events. The screen should be treated as a proposed filter rather than a validated strategy.

Key ideas

• The proposed screen requires RSI below 65, price change multiplied by very large order net inflow, and price above the five-day moving average.
• The article presents these conditions as a combination of technical and money-flow signals for recent relative strength.
• It suggests adding other indicators and fundamental measures for further screening.
• It gives no backtest or performance results and flags short-term trend and flow uncertainty.

Tags

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