Combining Moving Average Trend, RSI, and Afternoon Money Flow

Summary

This Chinese equity screening approach requires the 20-day moving average to be above the 120-day average, the 14-period RSI to be below 65, and positive large-order net flow in the afternoon. The moving averages act as a trend filter, while RSI limits the selected stocks to those below the stated threshold and afternoon flow represents recent buying interest. The example formula also includes a market capitalization floor and limits the universe to Shanghai and Shenzhen listings; a Python example adds a heat-ranking step.

The article gives no backtest results or evidence that the filters predict returns. It warns that the approach omits company fundamentals and that common moving-average rules may be exploited by other participants. It suggests combining the screen with valuation, dividends, and industry or fundamental analysis, and making the moving-average periods adjustable. The sample code’s data and flow calculations are not fully explained, so its implementation should be treated as illustrative.

Key ideas

• The screen requires the 20-day average to exceed the 120-day average.\nIt adds an RSI ceiling and positive afternoon large-order net flow.\nThe example formula includes market capitalization and exchange filters.\nThe article identifies missing fundamental analysis as a limitation and provides no performance evidence.

Tags

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