A-Share Trend Screen Using Moving Averages, Weekly MACD, and RSI

Summary

This post proposes a technical screen for Chinese stocks using three conditions: the 20-day moving average must be above the 120-day moving average, weekly MACD must be above the zero line, and RSI must be below 65. The moving-average relationship is intended to identify a longer-term upward trend, while the weekly MACD condition adds trend confirmation and the RSI threshold excludes stocks with stronger recent momentum. The post frames the combination as a trend-oriented selection method.

It suggests adding trading activity measures, company size, profitability growth, or market context to broaden the analysis. Its stated risks are that the rules omit other relevant indicators and cannot determine whether an existing uptrend will continue. No backtest, comparison, or return evidence is supplied. The formula and Python example are only illustrative and have potential implementation gaps: the formula excerpt is incomplete, and the example’s MACD calculation appears to use the available close series rather than explicitly weekly data. As a result, the written screen should be independently specified and tested before being interpreted as a validated strategy.

Key ideas

• The screen requires the 20-day average to exceed the 120-day average.
• Weekly MACD above zero and RSI below 65 serve as additional filters.
• The conditions express a trend-following stock selection approach, not a forecast guarantee.
• The post offers no performance or backtest evidence.
• The provided examples may not precisely implement the stated weekly MACD condition.

Tags

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