Combining RSI, Order-Flow Ratio, and Revenue Growth in a Stock Screen

Summary

This Chinese stock-selection proposal combines a relative-strength index below 65, an external-to-internal trading-volume ratio above 1.3, and revenue growth from 2018 to 2021 above 10%. The author presents the mix as a way to bring technical conditions, trading activity, and company fundamentals into one screen. The document includes example indicator formulas and sample data-processing code, and recommends considering financial statements, industry conditions, portfolio risk controls, and a systematic evaluation process.

It gives no backtest, performance results, or evidence that the chosen thresholds predict returns. The source also contains inconsistencies: its headline states a ratio above 1, while the body uses 1.3; the code and formulas may not measure the stated volume ratio or revenue comparison reliably. The strategy therefore requires careful data validation and a defined test before use. The stated limitations include dependence on incomplete or delayed financial data, market volatility and liquidity risk, and the possibility that the screen misses longer-term business prospects.

Key ideas

• The proposed screen requires RSI below 65, an external-to-internal volume ratio above 1.3, and revenue growth above 10% between 2018 and 2021.
• The approach combines technical, trading-activity, and fundamental inputs.
• The author recommends adding broader company and industry analysis and improving portfolio risk controls.
• No performance evidence is provided, and the document's headline and implementation examples contain discrepancies that need checking.

Tags

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