RSI and Industry Filters with Buying Pressure for Stock Selection

Summary

This article describes a Chinese stock screen combining RSI below 65, membership in the beverage and alcohol import-export industry, and positive net buying pressure from the opening auction. It presents the auction-flow condition as a short-term measure of buying strength alongside a technical filter and an industry classification. The article also gives reference implementations and proposes an expanded screen using positive five- and ten-day returns plus profit growth above the market average.

The document offers no backtest results or performance evidence. It cautions that the three original filters may be too narrow, and that auction net buying can reflect temporary strength without lasting value. It suggests adding industry valuation or earnings-growth measures, considering more stable return filters, and adjusting factor weights. The proposed expanded criteria remain suggestions rather than a tested replacement, and the article does not establish that the screen has predictive value.

Key ideas

• The initial screen combines RSI below 65, the beverage and alcohol import-export industry, and positive opening-auction net buying.
• The article frames auction buying as a short-term signal of market demand.
• It warns that the limited filters may miss relevant factors and that auction flow may not persist.
• Suggested refinements include positive five- and ten-day returns and profit growth above the market average.
• No backtest or performance results are reported.

Tags

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