Stock Screening with RSI, Consecutive Candles, and Volume Imbalance

Summary

The document describes a Chinese-market stock screen that combines a 14-period RSI below 65, a three-candle bearish pattern, and a buy-to-sell volume ratio above 1.3. It presents the approach as a way to identify unusual activity by combining a technical indicator with a measure intended to reflect trading pressure. Example formulas and Python-style selection logic are included, with a main-board market filter and sorting by percentage change.

The explanation offers no backtest, performance figures, or validation of the proposed signal. Its examples also do not fully agree: the prose specifies three consecutive down sessions, while the shown candle conditions test prior candles as bullish; the formula presented for volume imbalance may not match the stated buy-to-sell ratio. The article itself cautions that the ratio can be unstable and that the screen omits fundamental and policy factors. It suggests smoothing and choosing a time window, but does not evaluate those changes.

Key ideas

• The screen combines RSI below 65 with a three-candle pattern and a volume imbalance threshold above 1.3.
• The stated strategy aims to find stocks with unusual activity using technical and trading-volume information.
• The supplied prose and example candle conditions disagree about whether the three candles should be bearish or bullish.
• The document gives no performance evidence and warns that the volume ratio can be unstable.
• Fundamental and policy information are absent from the proposed screen.

Tags

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