Screening Chinese Stocks with RSI and Buy-Sell Volume Imbalance

Summary

This Chinese A-share screening proposal combines a relative strength index below 65, external-market volume exceeding internal-market volume by more than 1.3 times, and a listing history longer than one year. It describes the combination as a technical and trading-activity filter, and includes example references for expressing the conditions in a stock screener and a Python workflow.

The note recommends supplementing the screen with other technical and fundamental measures and adapting it to market conditions. It warns that technical indicators can fail, broader events can change price trends, and investors may not follow the rules consistently in difficult markets. No backtest, sample definition, execution assumptions, or evidence of the screen’s predictive value is supplied, so the proposed selection logic should be treated as an unvalidated screening idea.

Key ideas

• The proposed screen selects stocks with RSI below 65 and a buy-side to sell-side volume ratio above 1.3.
• It also requires that a stock has been listed for more than one year.
• The note suggests combining the technical filters with additional technical and fundamental measures.
• Indicator failure, changing market conditions, and inconsistent execution are identified as risks.
• The document supplies no backtest or evidence that the screen predicts returns.

Tags

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