Chinese Stock Screening with RSI, Order-Book Imbalance, and Volume

Summary

This Chinese stock screen combines a 14-period RSI below 65 with bid-side quantity greater than ask-side quantity, current volume above 10,000 lots, and an opening price above the previous close. The article presents the conditions as a way to find stocks with favorable trading sentiment and a positive opening gap. It also provides example indicator and Python implementations, though the examples do not match perfectly: the Python version adds a market-cap filter, while the indicator formula uses different volume comparisons.

The post says the screen omits company fundamentals and financial data, and warns that relying on technical indicators and sentiment alone can select weak candidates. It recommends considering fundamentals, financials, industry trends, and risk controls alongside the screen. No backtest results or performance evidence are provided. RSI below 65 is not, by itself, a standard definition of an oversold condition, so the article's characterization of the screen as targeting oversold stocks is not established by its stated rules.

Key ideas

• The screen requires RSI below 65, bid quantity above ask quantity, volume above 10,000 lots, and an opening gap above the prior close.
• The article treats order-book quantities and current volume as signs of favorable market sentiment.
• The code examples add or express conditions differently, so their implementation should be checked against the stated screen.
• The post advises combining technical filters with fundamental, financial, and industry analysis.
• No performance results are provided, and the RSI threshold alone does not demonstrate an oversold state.

Tags

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