Screening Stocks with RSI, Large-Order Flow, Price Change, and Positive PE

Summary

This Chinese stock-selection idea combines a relative strength index below 65, a condition based on multiplying price change by net volume from very large orders, and a positive price-to-earnings ratio. The article presents the mix as a way to include both market behavior and a basic profitability-related valuation screen. It also gives formula references and an illustrative data-filtering example, but does not define the observation period or thresholds for the price-change and order-flow component in detail.

The author warns that positive PE alone omits other financial measures and that the screen may be overly exposed to broad market moves. Suggested refinements include adding book value, dividend yield, and earnings growth measures, assigning weights to fundamentals, and combining the screen with other quantitative or technical analysis. No backtest, portfolio construction, transaction costs, or evidence of predictive performance is reported, so the stated rationale should be treated as a hypothesis rather than demonstrated edge.

Key ideas

• The proposed screen combines an RSI ceiling, a price-change and large-order-flow condition, and positive PE.
• The article positions the factors as a blend of technical and fundamental screening.
• It cautions that PE omits other financial information and that market direction can dominate results.
• No backtest or evidence of predictive performance is provided.

Tags

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