A-Share Screen Using RSI, Seven Down Candles, and Positive MACD

Summary

This document outlines a technical stock screen for Chinese A-shares: RSI below 65, seven consecutive sessions with closes below opens, and MACD’s difference line above zero. It presents the combination as a way to find stocks that have recently faced selling pressure while retaining a positive broader trend signal. It also gives indicator parameter conventions and a Python-based screening example.

The post cautions that the rules omit company fundamentals and that technical indicators can be interpreted differently. It suggests evaluating parameters with historical backtests and incorporating fundamentals or other context such as sector and market sentiment. However, it provides no backtest results, and the sample code appears inconsistent with its stated seven-session condition: it skips stocks when all seven closes are at or below their opens. The screen should therefore be treated as an unvalidated example rather than an established strategy.

Key ideas

• The screen combines RSI below 65, seven sessions of close-below-open candles, and positive MACD difference.
• The author interprets the conditions as recent selling pressure within a broader positive trend.
• The post recommends adding fundamental or market context and evaluating parameters with backtests.
• The sample code’s candle-condition branch appears to contradict the stated selection rule.

Tags

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