Stock Screening with RSI, Order-Book Volume, and the Ten-Day Average

Summary

This Chinese stock-screening article combines three conditions: a 14-period RSI below 65, best-bid volume greater than best-ask volume, and an opening price within five percent of the ten-day moving average. The approach uses RSI as a price-condition filter, the quoted bid and ask sizes as a sentiment or order-book signal, and proximity to the moving average as a technical support condition. Its example code also includes a market-capitalization threshold, although that condition is not stated in the article’s main screening rule.

The document supplies indicator formulas and sample code, but no backtest, measured results, or evidence that the conditions predict returns. The rule also leaves the meaning of “around” the moving average to its code example and does not explain how order-book volume is sampled or synchronized. The author notes that the screen excludes fundamentals, industry conditions, broader market movements, and liquidity considerations, and advises combining it with further analysis and risk controls.

Key ideas

• The proposed screen requires RSI below 65, best-bid volume above best-ask volume, and an opening price within five percent of the ten-day average.
• The article treats RSI, order-book size, and moving-average proximity as signals about price condition, sentiment, and support.
• The sample code adds a market-cap filter that is absent from the stated core rule.
• The document gives no performance testing and flags omitted fundamentals, industry trends, market conditions, and liquidity.

Tags

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