A Stock Screen Combining RSI Below 65 and Positive MACD

Summary

This stock-selection example combines a 14-period RSI below 65 with MACD above its zero line, alongside a reference to the year 2021. The stated rationale is to seek stocks with relatively moderate RSI readings and positive trend momentum. The document includes indicator formulas and a Python-style implementation, and suggests expanding the screen with moving averages, Bollinger Bands, fundamental data, or a longer selection period.

The implementation and stated rule do not fully align: the code checks that historical data from 2021 exists, but it evaluates RSI and MACD using the latest available observations. It therefore does not clearly restrict the signal to 2021. The article presents no selected-stock results, backtest, benchmark, or transaction-cost analysis, and it acknowledges that technical indicators can be imprecise and short-term trends can reverse. Treat the screen as an incomplete example requiring date handling and validation, rather than evidence of a profitable strategy.

Key ideas

• The proposed screen requires RSI below 65 and MACD above zero.
• The rule is framed with a 2021 time condition, but the example code only checks for the existence of 2021 data.
• The code evaluates the latest RSI and MACD observations, so its timing may differ from the stated screen.
• The document suggests adding other technical and fundamental inputs, but provides no performance results.
• Indicator readings and short-term trends can be unreliable or reverse.

Tags

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