Screening Small Profitable Stocks with RSI and Money Flow

Summary

This screening method selects stocks with market capitalization below 10 billion yuan, positive earnings, and an RSI below 65, then orders candidates by money-flow strength. It describes the money-flow measure as Chaikin Money Flow and gives a 20-period implementation alongside a 14-period RSI calculation. The screen therefore combines a momentum-style technical condition and a flow measure with size and profitability constraints.

The article gives indicator formula references and a sample Python workflow for applying the filters to stock data. It does not report a backtest, portfolio returns, or evidence that the ranking predicts future performance. Its own caveats are that market capitalization and current profitability do not capture valuation, business quality, financial structure, industry conditions, or competitive position. It recommends considering broader fundamentals and adjusting the selection universe or conditions to market context; implementation details may also need modification for actual use.

Key ideas

• The screen limits candidates to market capitalization below 10 billion yuan and positive earnings.
• It requires RSI below 65 and ranks qualifying stocks by money-flow strength.
• The example uses a 14-period RSI and a 20-period Chaikin Money Flow calculation.
• The document supplies a screening example but no evidence of historical or live performance.
• It warns that size and profitability alone omit important company and industry characteristics.

Tags

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