Combining RSI, Price Change, and Large-Order Flow in a Stock Screen
Summary
The article presents a stock-selection rule using an RSI threshold, the product of daily price change and net very-large-order volume, and a threshold for the day’s control ratio. It frames the combination as a way to consider both price behavior and trading flows. The post defines the control ratio using net buying relative to traded value and describes large-order net volume as a measure of institutional-style flow. It also offers sample formulas and code-like guidance for implementing the filters.
The article cautions that the screen leaves out company fundamentals and industry conditions, and says parameter choices can affect results. It suggests adding measures such as moving averages, MACD, earnings, and valuation. No backtest, performance figures, or evidence of predictive power is supplied. The descriptions and example implementation may use different units or data conventions, so the rule requires careful field and threshold verification before practical use.
Key ideas
- The screen combines an RSI ceiling with a price-change and large-order-flow condition.
- A net buying ratio is used to represent control by buyers relative to traded value.
- The author presents the rules as a mixed technical and flow-based filter.
- Fundamentals, industry context, and parameter sensitivity remain limitations.
- The article provides no performance results or empirical validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.