Stock Screening with RSI, Order Book Volume, and Moving Averages

Summary

This Chinese stock screen combines a 14-period RSI below 65 with first-level bid volume greater than ask volume and a condition involving five moving averages: 5, 10, 20, 30, and 60 days. The supplied formula requires those averages to be in descending order, which differs from the description of five averages overlapping. The article presents the screen as a way to find stocks with technical support and potential, but it provides no backtest or performance evidence.

The discussion warns that technical filters can miss company fundamentals and can be affected by market sentiment. It also notes that counting moving averages without considering their periods and positions may encourage poorly grounded selections. Suggested refinements include adding other indicators and fundamental checks, and evaluating moving-average periods and placement. The screen is therefore a rough selection rule, not a complete investment method; its historical behavior and practical usefulness are not established in the document.

Key ideas

• The screen combines RSI below 65 with bid volume exceeding ask volume.
• It uses five moving averages spanning short to longer lookback periods.
• The provided formula orders the averages from shortest to longest, rather than testing whether they overlap.
• The article identifies missing fundamentals and market sentiment as potential sources of risk.
• It recommends considering average periods and positions alongside other technical and fundamental information.

Tags

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