Stock Screening with RSI, Bid–Ask Volume, and Relative Volume

Summary

This note describes a Chinese equity screening rule combining a 14-period RSI below 65, greater buy-side than sell-side volume, and a volume ratio between 1.5 and 6. It presents the rule as a way to find stocks with a relatively favorable technical reading and elevated trading activity. The accompanying examples show indicator formulas and a Python filter; the Python version also adds a market capitalization threshold, while the formula example includes an additional current-volume condition, so the implementations are not fully consistent.

The note warns that the screen omits company fundamentals, financial data, industry trends, and explicit risk controls. It also says relative volume may not suit every industry or market environment. It recommends considering these factors, liquidity, and portfolio construction alongside the technical conditions. No backtest results or performance evidence are provided, so the selection rule's effectiveness remains unestablished.

Key ideas

• The screen combines RSI below 65 with buy-side volume exceeding sell-side volume.
• It requires the volume ratio to be above 1.5 and below 6.
• The code examples include additional filters and do not match each other exactly.
• The note identifies missing fundamentals, industry context, liquidity analysis, and risk controls as limitations.

Tags

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