Stock Screening with RSI, Bid-Ask Volume, and Large-Order Flow

Summary

This stock-selection method combines an RSI below 65 with first-level bid volume greater than ask volume, then filters by large-order net flow. The accompanying examples calculate RSI and compare buy-side and sell-side volume, while defining net large-order flow as the difference between two large-volume measures. The stated rationale is to combine a price indicator with order-book sentiment and capital-flow information.

The examples also impose a market-value threshold and require large-order flow to exceed positive or negative cutoffs, though the final explanation describes further refinement by flow direction. The post provides no historical test, benchmark, or evidence that these filters improve returns. It warns that the method omits company fundamentals and financial data, and that large-order flows can change unpredictably; it recommends combining the screen with broader company, industry, market, and risk analysis.

Key ideas

• The screen requires RSI below 65 and first-level bid volume greater than ask volume.
• Large-order net flow is formed from the difference between two large-volume measures and is used as an additional filter.
• The code examples add market-value and flow-magnitude conditions to the selection logic.
• The method omits fundamental analysis and provides no backtest or performance evidence.
• Order-flow readings may change, so the post recommends broader analysis and risk controls.

Tags

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