Chinese Stock Screening with RSI and Intraday Order Flow

Summary

This Chinese stock-selection note combines a relative strength index below 65 with a price-change and large-order-flow condition, plus positive afternoon large-order inflows. It presents the approach as a way to find stocks that have not risen excessively while showing signs of buying interest. A Python example filters a daily stock list using RSI, price change, a large-order proxy, opening and settlement prices, and positive money flow, though its fields do not fully clarify how each stated condition is measured.

The note gives no backtest, performance figures, or validation showing that these signals predict returns. It also warns that the screen relies mainly on technical and liquidity measures, omitting company fundamentals and potentially overlooking other market drivers. Suggested improvements include adding valuation and profitability measures, weighting factors, and adapting the rules to market conditions. Order-flow measures can vary with liquidity and data definitions, and the strategy description does not specify portfolio construction, trade timing, or risk controls.

Key ideas

• The screen uses an RSI ceiling of 65 alongside price movement and large-order flow signals.
• Positive afternoon large-order inflow is treated as evidence of buying interest.
• The accompanying code uses fields whose relationship to the described signals is not fully explained.
• The note identifies missing fundamentals and changing market conditions as limitations.

Tags

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