Screening Chinese Stocks with RSI, Float Market Cap, and Money Flow

Summary

This document outlines an equity screen that selects stocks with RSI below 65 and circulating market capitalization between 5 billion and 10 billion yuan, then ranks qualifying names by a money-flow measure. The accompanying example also filters out certain industries and special-treatment stocks, restricts selection to main-board listings, and prints the ten highest-ranked candidates. Its flow calculation weights trading volume by where the close falls within the day’s high-low range.

The article explains RSI as a gauge of short-term overbought or oversold conditions, market capitalization as a size filter, and money flow as a proxy for buying pressure. It warns that these few inputs omit broader market direction and company fundamentals, and that changing market conditions can produce false signals. It suggests adding valuation, profitability, sector, liquidity, and sentiment information. No backtest, performance statistics, or evidence of predictive advantage is provided, and the example’s data fields and calculation choices would need validation before use.

Key ideas

• The screen requires RSI below 65 and circulating market capitalization from 5 billion to 10 billion yuan.
• Qualifying stocks are ranked by a volume-weighted measure based on the close’s position within the daily range.
• The example applies additional exclusions for selected industries, special-treatment stocks, and non-main-board listings.
• The article says the screen omits market-wide conditions and fundamentals, which may lead to selection errors.
• It recommends evaluating additional valuation, profitability, sector, liquidity, and sentiment factors.

Tags

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