Chinese Stock Screen Using RSI, Order Book Imbalance, and Opening Gain

Summary

This document presents a Chinese-equity screening rule combining three conditions: RSI below 65, displayed best-bid volume greater than best-ask volume, and the gain at 9:25 below 6%. The accompanying explanation interprets the RSI threshold as a price condition, the bid-ask volume comparison as a sentiment signal, and the opening gain limit as a way to avoid stocks that have already risen sharply. Example indicator and Python snippets illustrate how similar conditions might be applied to stock data, though the snippets do not establish a validated implementation.

No backtest results, returns, or comparison with a benchmark are provided. The source itself cautions that the screen omits financial statements and industry trends, and that short-term price behavior may not reflect longer-term outcomes. It suggests considering fundamentals, market conditions, risk controls, and portfolio construction alongside the rule. The description therefore offers a screening concept, not evidence that the conditions predict profitable trades.

Key ideas

• The screen requires RSI below 65 and best-bid volume above best-ask volume.
• It excludes stocks whose 9:25 gain is 6% or more.
• The source frames these conditions as technical, order-book, and short-term price filters.
• It offers no backtest or evidence of profitability.
• The rule omits fundamental and industry analysis and should be considered alongside risk controls.

Tags

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