Chinese Stock Screen Using RSI, Money Flow, and Pre-Market Gains

Summary

This screening idea combines a relative strength index below 65, positive money-flow strength ranked from strongest to weakest, and a pre-market gain below 6% at 9:25. The article interprets the RSI condition as avoiding highly elevated readings, positive Chaikin Money Flow as evidence of buying pressure, and the pre-market cap as a way to avoid stocks that have already surged before the open. It includes indicator formula references and illustrative Python logic, but the code is only a sketch and does not establish that the signals are calculated consistently with the stated ranking rule.

No backtest, return series, or comparison with a benchmark is provided. The author notes that simple indicators can mislead and that pre-market price changes may not predict the session’s direction. Suggested refinements include adding other indicators and fundamental checks. The thresholds and data handling would need validation on suitable Chinese market data, including attention to timestamp alignment and the distinction between pre-market quotes and regular-session observations.

Key ideas

• The screen filters for RSI below 65, positive money flow, and a 9:25 pre-market gain below 6%.
• Positive money flow is used as a proxy for buying pressure, while RSI limits elevated readings.
• The document provides illustrative formulas and code but no evidence from historical testing.
• Pre-market movement may not predict the regular session, and indicator thresholds can produce misleading selections.
• The author suggests adding technical and fundamental checks.

Tags

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