Screening Shenzhen Main Board Stocks with RSI, Order-Book Volume, and Valuation
Summary
The proposed stock screen combines an RSI below 65 with greater displayed buy-side than sell-side volume, and limits candidates to Shenzhen Main Board stocks with positive price-to-earnings and price-to-book ratios below specified ceilings. The article also describes these conditions as a blend of technical signals, market interest, and basic valuation filters. It provides sample formula and Python implementations of the criteria.
No backtest, returns, or benchmark comparison is reported, so the document offers a screening recipe rather than evidence that the rule is profitable. It cautions that favorable order-book volume does not prevent a stock from continuing to fall, and that valuation ratios alone do not capture financial quality, competitive strength, or growth prospects. It suggests examining company fundamentals, industry conditions, earnings, and growth measures, while the provided screen itself does not implement those additions. The order-book quantities and ratio thresholds also depend on the data source and definitions used.
Key ideas
- The screen requires a 14-period RSI below 65 and displayed best-bid volume greater than best-ask volume.
- It restricts candidates to Shenzhen Main Board stocks within stated price-to-earnings and price-to-book ranges.
- The article supplies example formulas and Python logic but no performance evaluation.
- Order-book imbalance and low valuation ratios do not establish that a stock is financially sound or likely to rise.
- Further analysis of company finances, growth, competition, and industry conditions is recommended.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.