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Stock Screening with RSI, Float Market Value, and Order Flow

Article SuperMind
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Summary

This note describes a Chinese equity screen requiring RSI below 65, circulating market value between 5 and 10 billion yuan, and a ratio of external to internal trading above 1.3. It presents the combination as a way to blend a short-term momentum or overbought measure, company size, and an order-flow indicator. The article includes example indicator definitions and Python-style screening logic, including a ranking step for candidate stocks.

The note offers no backtest, trade sample, or performance statistics, so its claims about usefulness are not supported by empirical evidence in the document. It acknowledges that the screen omits company fundamentals and that external/internal volume ratios can be noisy or affected by factors other than buying pressure. It recommends combining the signals with market and fundamental analysis and applying stop-loss and profit-taking rules, while warning that the indicator ratio alone may misrepresent supply and demand.

Key ideas

  • The proposed screen combines RSI below 65 with a specified circulating market-value band and an external-to-internal trading ratio above 1.3.
  • The article treats RSI as a short-term condition measure and the volume ratio as a possible indication of trading pressure.
  • Its examples include screening and ranking logic, but the document provides no performance evaluation.
  • The author cautions that fundamentals are omitted and the order-flow ratio can be distorted by short-term noise.

Tags

China marketsEquitiesTechnical indicatorsMarket microstructureRisk management

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