Screening Chinese Stocks with RSI, Price Change, and Large-Order Flow

Summary

This Chinese A-share screening example combines an RSI ceiling of 65, the product of price change and a measure of very large order net volume, and exclusion of stocks that hit the daily limit the previous day. Its final stated rules add a price-to-earnings ratio below 30. The article supplies sample indicator logic and Python-style data handling, presenting the screen as a way to avoid chasing an immediately limit-up stock while considering short-term price movement and trading activity.

The document gives no backtest, performance figures, or evidence that the criteria identify profitable trades. It acknowledges that market conditions can change, that some candidates may be speculative, and that extreme moves are difficult to handle. It recommends supplementary filters, risk and capital management, and defined entry and exit rules. The example does not specify a validated execution process, and the order-flow proxy and limit-up exclusion would need careful verification against the intended data source.

Key ideas

• The screen uses RSI below 65 and requires price change multiplied by large-order net volume to be positive.
• It excludes stocks described as limit-up on the prior day and adds a price-to-earnings ceiling below 30.
• The article provides example screening logic but no backtest or profitability evidence.
• It identifies changing market conditions and speculative stocks as risks.
• It recommends supplementary filters and explicit entry, exit, and capital management rules.

Tags

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