Stock Screening with RSI, Order-Book Volume, and Concentration

Summary

This Chinese stock-screening post describes selecting shares with an RSI below 65, bid-side volume greater than ask-side volume, and a concentration measure below 20%. The author presents the combination as a short-term screen using a momentum indicator, order-book imbalance, and a measure intended to reflect shareholder concentration. Example formulas and Python-style pseudocode show how these conditions might be combined, with one example also including a market-cap filter.

The post gives no backtest, performance figures, or evidence that the screen predicts returns. It cautions that low concentration may coincide with continued selling by major shareholders or governance concerns, and that RSI and bid/ask volume capture market conditions rather than company quality. It recommends adding fundamental, financial, industry, and shareholder information, and adapting the screen to market conditions and investor preferences. The indicator definitions and data fields may depend on the platform, so implementation details need validation before use.

Key ideas

• The screen combines RSI below 65 with greater bid-side than ask-side volume and concentration below 20%.\nThe author frames the conditions as a short-term stock selection approach that incorporates market sentiment and shareholder structure.\nThe document supplies example formulas and pseudocode but no measured strategy results.\nLow concentration can still accompany shareholder selling or governance risks.\nFundamental, financial, and industry analysis are suggested as additional filters.

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