RSI, Market Capitalization, and Prior-Day Flow Stock Screen

Summary

This Chinese equity screening idea combines a relative strength index below 65, a circulating market capitalization between 5 billion and 10 billion yuan, and positive net buying attributed to major participants on the previous day. The article describes the combination as a way to pair a technical condition with a size range and a recent money-flow filter. Its example code calculates RSI from closing prices, applies the market capitalization and RSI limits, and checks prior-day buying flow. When enough stocks qualify, it sorts them by previous close and considers up to five, excluding those with a change percentage at or above 9.9.

The post acknowledges that the screen leaves out fundamentals and industry conditions, and that major-participant flow data can become stale or be inaccurate. It suggests adding more information and risk controls. It supplies formulas and example selection logic, but no backtest, performance evidence, or clear rationale for the final ranking rule. The article’s initial description and final rule also differ on whether the flow condition is control or positive net flow, so the intended implementation is not fully consistent.

Key ideas

• The proposed screen combines RSI below 65, a circulating market capitalization range, and positive prior-day major-participant net buying.
• The example code calculates RSI from closing prices and applies the filters to candidate stocks.
• If at least five candidates qualify, the example ranks them by previous close and applies a daily-change cutoff.
• The article flags omitted fundamentals and industry factors, along with possible inaccuracies or delays in flow data.
• No backtest evidence is reported, and the prose is inconsistent about the major-participant flow condition.

Tags

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