Screening Chinese Stocks with RSI, Price Moves, and Institutional Flows

Summary

This post proposes a Chinese stock screen using an RSI reading below 65, the product of percentage price change and a measure of net large-order inflow, and positive institutional ownership or participation. Its example filter also requires positive price-to-book and price-to-earnings values, and sets the price-change-times-flow measure above 1. The stated aim is to find stocks with moderate RSI readings and signs of institutional buying.

The post treats RSI and order-flow data as technical or market signals and institutional participation as a contextual filter. It warns that institutional buying does not guarantee future performance and that the approach may miss strong stocks without such buying. It suggests adding other technical, company, industry, and market-cap measures, but offers no backtest, transaction-cost analysis, or supporting evidence for the thresholds. The data fields and flow measures also require precise definitions and reliable sourcing before the screen can be reproduced or evaluated.

Key ideas

• The proposed screen combines RSI below 65 with a price-change and large-order net-inflow measure.
• Its example filter also selects for positive valuation ratios and positive institutional participation.
• Institutional buying may provide context, but it does not guarantee that a stock will rise.
• The screen may exclude strong stocks that lack the specified institutional activity.
• The post supplies no performance test, and its thresholds and data definitions need validation.

Tags

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