Stock Screening with RSI, Three Down Days, and Large-Order Flow

Summary

This Chinese equity-screening post combines a 14-period RSI threshold below 65, a three-day candlestick condition, and a measure intended to capture price movement alongside very large order flow. Its example formulas and Python sketch also restrict the universe to main-board shares, require a positive calculated flow-related value, and rank qualifying names by daily percentage change. However, the description and examples are not fully consistent: the prose says three consecutive down days, while the supplied condition checks prior candles as up days and does not clearly implement the stated pattern.

The author frames the method as a mix of technical and money-flow screening, but supplies no backtest or evidence of returns. The post flags market volatility, omitted company fundamentals and policy factors, and instability in large-order flow data as limitations. It suggests adding fundamental and policy inputs and exploring more stable flow measures. The calculation shown is a rough proxy based on price and volume thresholds, so it should not be assumed to measure actual large-order net flow or to validate the proposed screen.

Key ideas

• The stated screen combines RSI below 65, a three-day candle pattern, and a price-and-large-order-flow measure.
• The examples add a main-board universe filter and rank selected stocks by daily price change.
• The prose and the supplied candle conditions disagree about whether the relevant days are up or down.
• The volume-based calculation is a proxy and does not establish actual large-order net flow.
• The post gives no performance evidence and warns about unstable flow data and omitted fundamentals.

Tags

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