Chinese Stock Screen Using RSI, Order-Book Volume, and Recent Limit-Ups

Summary

This Chinese stock-selection idea combines three conditions: a 14-period RSI below 65, best-bid volume greater than best-ask volume, and more than two limit-up sessions during the prior ten days. The accompanying discussion interprets the RSI threshold as avoiding an overbought reading, the order-book imbalance as a sign of optimistic sentiment, and recent limit-ups as evidence of active short-term speculation. It is framed for short-term stock selection, with example formula and Python references.

The document cautions that the screen omits company fundamentals and financial data, and that historical price behavior cannot fully predict future moves. It recommends considering fundamentals, industry trends, technical measures, and risk controls alongside the screen. No backtest results, return figures, or transaction-cost analysis are presented. The code examples also include additional implementation details, such as a market-cap filter in the Python sample, that are not part of the stated core rule; data definitions and execution assumptions would need validation before use.

Key ideas

• The screen requires RSI below 65 and best-bid volume above best-ask volume.
• It also selects stocks with more than two limit-up sessions in the previous ten days.
• The rationale combines a non-overbought condition, order-book sentiment, and recent price strength.
• The source warns that the rules omit fundamentals and may expose users to short-term speculation.
• No performance test or transaction-cost evidence is supplied.

Tags

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