Stock Screening with RSI, Order-Book Volume, and Rising Flow Strength

Summary

This Chinese equity screening proposal selects stocks with a 13-period RSI below 65, first-level bid volume greater than ask volume, and increasing money-flow strength. Its examples calculate a volume-weighted flow measure from the close’s position within the high-low range, smooth it, and compare the latest value with the prior one. A sector exclusion is also included in the example formulas.

The article frames the conditions as a way to find shares with buying pressure and improving flows, but supplies no backtest, performance statistics, or independent evidence that these signals predict returns. It acknowledges that technical measures do not capture business fundamentals, money-flow measures may be unreliable predictors, and relying on a small set of filters can make the selection too narrow. It recommends considering multiple technical and fundamental factors, although it does not specify or evaluate a revised combined model. The code examples are implementation references, and the document does not establish their robustness across markets or periods.

Key ideas

• The screen combines a 13-period RSI threshold with bid volume exceeding ask volume.
• A smoothed money-flow measure is required to rise relative to its previous reading.
• Example formulas exclude a particular market sector.
• The article provides no backtest or evidence of predictive performance.
• It identifies incomplete fundamental coverage and narrow selection as limitations.

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