A Stock Screen Combining RSI, MACD, and Revenue Growth

Summary

The document describes a Chinese stock selection rule that combines a technical screen with historical revenue growth. It selects stocks with RSI below 65, a rising MACD signal line (DEA), and 2021 revenue more than 10% above 2018 revenue. The accompanying discussion says that pairing price indicators with financial data may help identify growing companies, while warning that revenue can fluctuate with economic, policy, and competitive conditions and is only one measure of financial health.

The example Python implementation adds filters for positive price-to-book and price-to-earnings ratios, caps the P/E ratio, and sorts candidates by valuation measures. However, the code’s MACD histogram condition does not clearly implement the stated rising-DEA rule, and its financial data handling and sorting approach warrant independent review. The document provides no backtest results or performance evidence. It suggests adding other financial measures and using a considered historical window, but gives no validation method or evidence that the proposed thresholds work across periods or market conditions.

Key ideas

• The stated screen combines RSI below 65, a rising MACD signal line, and revenue growth from 2018 to 2021.
• The accompanying code adds valuation filters that are not part of the headline selection rule.
• The code’s MACD histogram check does not clearly match the stated DEA condition.
• Revenue alone may not capture overall financial health, and the document provides no performance validation.

Tags

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