Chinese Stock Screen Using RSI, Three Bearish Candles, and Positive MACD

Summary

This technical stock screen combines RSI below 65, three consecutive bearish candles, and a MACD reading above zero. The intended idea is to find stocks that have recently pulled back while the broader indicator remains in positive territory. The article describes the approach as suited to short- or medium-term screening and provides illustrative indicator and Python references, including commonly used RSI and MACD settings.

The examples are not fully consistent: the written rule calls for three bearish candles, while parts of the displayed conditions check different candle shifts and include an additional unspecified indicator threshold. The article supplies no backtest or return evidence and warns that technical-only selection ignores company fundamentals and market-wide risk. It proposes adding fundamental and market context and using stop-loss controls, but does not define those rules. The screen should therefore be understood as an incomplete selection concept, not a validated entry and exit strategy.

Key ideas

• The stated screen requires RSI below 65, three consecutive down candles, and MACD above zero.
• The proposed setup pairs recent weakness with a positive MACD condition.
• The code examples do not consistently implement the stated three-candle rule and include an unspecified extra filter.
• No backtest results or return evidence are provided.
• Fundamentals, overall market risk, and explicit stop rules remain unaddressed or underspecified.

Tags

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