Screening Stocks for Oversold RSI, Seven Down Days, and Afternoon Inflows

Summary

This Chinese stock-selection proposal requires RSI below 65, seven consecutive sessions in which the close is no higher than the open, and positive large-order net fund flows during the afternoon trading session. Its example implementation also sets an afternoon inflow threshold relative to turnover. The idea combines a momentum indicator, recent downward price action, and an intraday flow measure to identify stocks that may be attracting buying interest despite a run of down days.

The author warns that the screen can overlook fundamentals and longer-term value, and that short-term flows and sentiment can change quickly. Suggested improvements include considering company, industry, and market-cap information, reviewing related disclosures, and periodically backtesting and adjusting parameters. The document provides example selection logic but no historical results or evidence that the conditions produce profitable trades. The proposed combination therefore remains an unvalidated screening hypothesis.

Key ideas

• The screen combines RSI below 65 with seven consecutive down sessions and positive afternoon large-order flows.
• The example also compares afternoon inflows with trading turnover.
• The author cautions that short-term flow signals can distract from fundamentals and longer-term value.
• Additional company and industry context and periodic backtesting are suggested.
• No performance results validate the selection rules.

Tags

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