Screening Main Board Stocks with RSI, Daily Gains, and Trading Flow

Summary

This proposed Chinese equity screen selects main board stocks with RSI below 65, a daily gain above one percent, and an external-to-internal trading volume ratio above 1.3. The article presents these as combined technical and order flow conditions, intending to find shares with positive short term price action and comparatively stronger buying activity. Its sample selection logic also excludes special treatment and suspended stocks and sorts candidates by their intraday gain.

The document recommends adding valuation, dividend, growth, and industry analysis, while diversifying holdings and controlling risk. It does not provide a backtest, trading costs, or evidence that the filters improve returns. The formula and narrative also appear inconsistent: one code expression compares net outflow with net inflow, which may not represent the stated external-to-internal trading ratio. Such data definitions and the RSI and price conditions should be checked before implementation.

Key ideas

• The proposed screen combines RSI below 65, a daily gain above one percent, and a trading flow ratio above 1.3.
• The sample logic filters out special treatment and suspended stocks and ranks candidates by daily price change.
• The article recommends adding fundamental and industry filters and diversifying positions.
• No performance evidence is given, and the flow variable implementation may not match the stated criterion.

Tags

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