Screening Stocks with RSI, Profit Growth, and Money-Flow Strength

Summary

This Chinese equity-selection idea combines three screens: a 14-period RSI below 65, year-over-year growth in parent-company net profit above 20% and no more than 100%, and money-flow strength ranked from high to low. The example implementation estimates money-flow strength from money flow relative to average volume, smooths it, and uses the slope of that series; its recent slope readings must be rising. The stated intent is to combine price, company earnings, and market-flow information when searching for candidates.

The source warns that emphasis on short-term flows may overlook long-term business prospects and can expose the screen to noisy sentiment shifts and chasing price moves. It suggests considering additional market activity or valuation measures and refining the flow proxy. The document includes sample screening logic but no backtest, transaction rules, or performance results. Its narrative describes sorting by flow strength, while the code examples apply a rising-slope condition, so the precise ranking and selection procedure is not fully consistent.

Key ideas

• The screen requires a 14-period RSI below 65 and parent-company profit growth between 20% and 100% year over year.
• Money-flow strength is estimated using money flow relative to average volume and its recent slope.
• The approach combines technical, earnings-growth, and money-flow conditions for Chinese stocks.
• The source cautions that short-term flow measures can be noisy and may neglect long-term business prospects.
• The written ranking description and example slope conditions do not fully specify the same selection procedure.

Tags

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