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Screening Chinese Stocks with RSI, Trading Imbalance, and Concentration

Article SuperMind
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Summary

This post proposes a Chinese equity screening rule combining a 14-period RSI between 40 and 65, a ratio of external to internal trading volume above 1.3, concentration below 20%, and market capitalization above 200 million yuan. The author presents the filters as a way to find larger stocks with comparatively favorable trading sentiment and more balanced ownership distribution. The post includes formula and Python examples intended to implement the selection logic.

No backtest results or performance evidence are provided. The author cautions that the concentration measure may be subjective, the screen may be too restrictive, and its usefulness can vary with market conditions. Suggested refinements include adjusting the concentration and size thresholds and adding fundamental, technical, industry, or company-specific information. The available text does not establish that the indicators reliably predict returns.

Key ideas

  • The screen combines RSI, external-to-internal trading volume, ownership concentration, and market capitalization filters.
  • The stated RSI range is above 40 and below 65, while the trading-volume ratio threshold is 1.3.
  • The post provides implementation examples but no performance evaluation.
  • The author identifies the concentration measure and the screen’s narrow scope as limitations.

Tags

EquitiesChina marketsTechnical indicatorsSentiment

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