Chinese Stock Screen Using RSI, Order-Flow Ratio, and Limit-Ups

Summary

This Chinese A-share screening proposal combines three conditions: a 14-period RSI below 65, external trading volume divided by internal trading volume above 1.3, and more than two limit-up days within the prior ten days. It presents the mix as a way to find active stocks using momentum, trading activity, and recent price behavior. The article also sketches formula and Python-based screening approaches using market-data libraries.

The text characterizes the screen as technically focused and warns that it omits company fundamentals, which may leave it poorly suited to different market environments or produce an unfavorable risk-return profile. It recommends considering financial and industry information as well as price and volume factors, and mentions risk controls such as stop losses. The code example does not establish that the stated conditions were correctly implemented or tested, and the document supplies no backtest, return, or risk statistics. Its suitability for short-term trading is asserted rather than supported by evidence.

Key ideas

• The proposed screen requires RSI below 65, an external-to-internal volume ratio above 1.3, and more than two limit-up days in ten days.
• The selection logic combines a momentum indicator, trading-volume information, and recent price events.
• The article warns that a purely technical screen leaves out company fundamentals and may not adapt well across market conditions.
• It suggests incorporating financial, industry, price-volume, and risk-control considerations.
• No backtest results or performance statistics are provided.

Tags

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