Combining RSI, Order-Flow Ratio, and Limit-Ups in a Stock Screen

Summary

The proposed Chinese equity screen combines three conditions: RSI below 65, the ratio of buy-initiated to sell-initiated volume above 1.3, and at least two limit-up events within a 500-day lookback. The post presents this as a way to identify stocks with technical strength and trading interest, and includes example query logic and Python-like screening steps. It also suggests refining candidate selection with sector trends and company fundamentals.

The article offers no historical performance analysis or evidence that the combined filters predict returns. It explicitly cautions that technical indicators can fail, policy and other market conditions can change price behavior, and prior limit-ups do not guarantee future gains. It also notes that the screen may omit fundamentals and sector rotation. The example implementations should be checked carefully: code-level definitions and data fields may not consistently represent the stated lookback and limit-up conditions, so they should not be treated as validated implementations.

Key ideas

• The screen requires RSI below 65, an order-flow volume ratio above 1.3, and repeated limit-up events.
• The limit-up condition uses a 500-day lookback in the stated screening logic.
• The author recommends considering sector behavior and company fundamentals alongside the technical filters.
• The post warns that technical signals and historical limit-up counts may not forecast future returns.
• The examples are not accompanied by performance validation and their implementation details need verification.

Tags

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