Combining RSI, Order-Book Imbalance, and Historical Revenue Growth in a Stock Screen

Summary

This Chinese stock-screening note combines three filters: a 14-period RSI below 65, displayed best-bid volume greater than best-ask volume, and 2021 revenue more than 1.1 times 2018 revenue. The stated rationale is to find stocks with moderate RSI readings, stronger visible buying interest, and historical revenue growth. An example implementation also excludes a sector code, though the strategy description does not explain that exclusion.

The document provides formula and Python examples but no backtest, return figures, or evidence that the filters identify undervalued stocks or predict future profits. It warns that revenue growth alone does not establish future profitability and may obscure deteriorating finances or short-term conditions. It recommends considering additional technical measures and company metrics such as valuation, leverage, and margins. The historical revenue comparison and order-book snapshot are limited inputs, and the note does not specify how to handle missing or non-comparable financial data.

Key ideas

• The screen requires a 14-period RSI below 65 and best-bid volume above best-ask volume.
• It also requires 2021 revenue to exceed 2018 revenue by more than a factor of 1.1.
• The stated thesis links these conditions to moderate price strength, visible buying interest, and revenue expansion.
• The note gives no performance evidence and cautions that revenue growth does not guarantee earnings growth.

Tags

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