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A-Share Stock Screen Using RSI, MACD, and Market Capitalization

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Summary

The document describes an A-share stock screen combining three conditions: a 14-period RSI below 65, free-float market capitalization between 5 and 10 billion yuan, and a MACD value from two sessions earlier below zero. It presents RSI and MACD as technical filters and market capitalization as a size constraint. A code example also sorts qualifying stocks by percentage change and returns a limited list when enough candidates meet the conditions.

The article cautions that the screen relies heavily on technical signals and market size while omitting fundamental analysis, which may increase the chance of misleading selections or speculative exposure. It suggests adding company financial, industry, and policy information, considering other technical measures, and using trading activity filters such as volume or turnover. No backtest results or performance evidence are provided, so the document outlines a screening recipe rather than demonstrating that it has predictive value. The proposed criteria should therefore be treated as a starting point for evaluation, not a validated strategy.

Key ideas

  • The screen requires RSI below 65, a specified free-float market-cap range, and a lagged MACD condition.
  • The technical filters are intended to characterize price conditions, while market capitalization narrows the eligible stock universe.
  • The example ranks qualifying candidates by percentage change and limits the number returned.
  • The article flags the absence of fundamental analysis and warns about speculative risk.
  • It recommends testing additional financial, industry, technical, and trading-activity filters.

Tags

EquitiesTechnical indicatorsChina markets

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