Screening Chinese Stocks with RSI, Order Flow, and Recent Price Spikes

Summary

This article describes an A-share screening rule combining RSI below 65, an external-to-internal trade volume ratio above 1.3, and at least one daily gain above 10% during the preceding 25 trading days. It interprets the RSI threshold as avoiding an overbought condition, the order-flow ratio as a sign of buying pressure, and the large daily move as evidence of activity. A code example also checks recent price changes and a positive 10-day return before retaining candidates.

The document offers rationale for the filters but no backtest or performance evidence. It cautions that the single-day gain threshold is subjective, short-term moves can reflect temporary events, and the approach omits fundamentals and comprehensive risk controls. It suggests adapting thresholds to market conditions and combining technical signals with fundamental analysis. The rule is therefore a screening proposal, not evidence of a validated strategy.

Key ideas

• The screen combines RSI below 65 with an external-to-internal trade volume ratio above 1.3.
• It also requires at least one daily gain above 10% over the previous 25 trading days.
• The article treats the filters as indicators of buying pressure and recent stock activity.
• It presents no measured strategy performance and flags subjective thresholds and missing fundamental analysis.

Tags

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