Combining RSI, Order-Flow Imbalance, and a Weekly Moving-Average Cross

Summary

This Chinese-equity screening proposal combines an RSI below 65, an external-to-internal trading-volume ratio above 1.3, and a weekly price cross above the 30-week moving average. The intended mix is a momentum or trend condition alongside a measure of trading activity. The accompanying formula also includes a circulating-market-value range of 5 to 20 units as stated in the source, plus MACD conditions requiring the difference line to exceed its signal line and both to be positive.

The article supplies formula and Python examples but no backtest, measured returns, or evidence that the combined conditions have predictive value. It cautions that a weekly moving-average cross can generate false signals and that market risk remains. It suggests adding volume, price-change, and macroeconomic context and reviewing the rules over time. The examples do not consistently implement the headline conditions, so the intended signals and data definitions need careful verification before use.

Key ideas

• The headline screen requires RSI below 65, an external-to-internal volume ratio above 1.3, and a weekly cross above the 30-week average.
• The formula example adds MACD confirmation and a stated circulating-market-value range.
• The note provides no test results, and its example implementations do not consistently match the stated conditions.
• False moving-average signals and broader market risk are acknowledged limitations.

Tags

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