A Stock Screen Combining RSI, Afternoon Net Flows, and MACD

Summary

This post presents an equity selection rule combining three signals: RSI below 65, positive large-order net inflow in the afternoon, and a shortening positive MACD histogram on a 15-minute interval. It also shows illustrative indicator and Python implementations and excludes shares whose codes begin with a particular prefix. The described conditions aim to find stocks with buying activity and a potentially easing short-term decline.

The post cautions that the screen ignores company fundamentals and could select firms with weak growth or losses; sudden negative news is another risk. It suggests adding valuation measures, institutional research information, and price momentum or trend indicators. No backtest, trade results, or evidence of improved accuracy is presented. The code example's data and interval handling do not clearly establish that all stated conditions are implemented as described, so the screen should be treated as an outline rather than a validated strategy.

Key ideas

• The screen requires RSI below 65, positive afternoon large-order net flow, and a shortening positive MACD histogram on a 15-minute interval.
• Its signals combine a momentum oscillator, order-flow information, and MACD behavior.
• The post warns that technical and flow filters omit company fundamentals and remain vulnerable to news shocks.
• Valuation, institutional research, and trend measures are suggested as possible additions.
• No performance results are given, and the sample implementation does not clearly validate the stated interval and flow conditions.

Tags

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