Chinese Stock Screening with RSI, Bid Ask Volume, and Ten Day Returns

Summary

This article outlines a stock screen using three signals: RSI below 65, displayed buy-side volume greater than sell-side volume, and a positive ten-day price change capped below 35%. It frames the combination as a way to consider recent price behavior and order-book sentiment when identifying Chinese stocks. Sample indicator logic and code are provided, but the article gives no backtest, performance statistics, or evidence that the conditions predict excess returns.

The headline states a ten-day gain below 3%, while the body and examples use a ceiling of 35%, so the intended threshold is unclear. The article acknowledges that this short-horizon filter omits fundamentals, industry conditions, and liquidity, and that price fluctuations may make the screen unreliable. It suggests combining these signals with broader company and market information, but does not specify how to do so or define a portfolio, execution method, or risk limit.

Key ideas

• The proposed screen combines RSI below 65, buy-side volume above sell-side volume, and a positive ten-day return.
• The stated upper bound for the ten-day return conflicts between the headline and the detailed rules.
• The article includes example screening logic but no empirical performance evidence.
• It identifies omitted fundamentals, industry conditions, and liquidity as limitations.

Tags

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