Chinese Equity Screen Using RSI, Volume Growth, and MACD Histogram

Summary

This document presents a Chinese equity screening rule that combines RSI below 65, a stated increase in daily position or volume participation above 5%, and a shortening green MACD histogram on a 15-minute interval. The author interprets the RSI and increase condition as signs of favorable current conditions and the shrinking negative histogram as a possible adjustment phase that may offer an entry point. Example formula and Python snippets illustrate the intended filters, though their variable definitions and data handling do not consistently match the stated screen.

No backtest results or performance measurements are supplied. The document cautions that technical filters can overlook company fundamentals and cannot reliably predict future price moves. It suggests adding other indicators, valuation and financial measures, and adapting thresholds to market conditions. The screen is a candidate-selection rule rather than a complete trading system: entry execution, exits, portfolio sizing, and validation are not specified.

Key ideas

• The screen combines an RSI threshold, a daily increase condition, and a shrinking negative MACD histogram.
• The MACD condition is described on a 15-minute interval, while the example code uses historical close data without showing intraday inputs.
• The document offers no performance evidence, so the screen's predictive value is unknown.
• It identifies omitted fundamentals and unstable indicator signals as important limitations.
• Suggested extensions include additional technical filters, valuation measures, and adaptive thresholds.

Tags

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