A Stock Screen Combining Price Range, Positive MACD, and RSI Below 65

Summary

This document presents a three-condition equity screen: daily price range above 1, MACD above its zero line, and RSI below 65. The range criterion seeks stocks with notable movement, positive MACD is treated as evidence of an upward trend, and the RSI ceiling is intended to avoid the more overbought part of the indicator’s scale. Formula references and sample Python fragments illustrate the intended indicators.

The article provides no backtest, dated signal examples, or performance evidence, so the claimed usefulness of the combined filters is not demonstrated. It cautions that the selection is subjective, that individual stocks and markets can be volatile, and that RSI is short-term and cannot predict subsequent returns. It suggests testing other measures such as volume, OBV, or KDJ, or tuning thresholds and MACD settings. The code example’s data handling is incomplete and does not clearly implement a complete cross-sectional stock screen, so the written rule is more reliable as a description than the sample implementation.

Key ideas

• The proposed screen requires price range above 1, MACD above zero, and RSI below 65.
• The rules combine a volatility measure, a trend filter, and an RSI ceiling.
• The document provides formulas and code fragments but no tested results.
• The author cautions that short-term RSI and volatile markets limit the screen’s predictive value.
• Additional indicators or parameter changes are proposed, but require validation.

Tags

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