Chinese Stock Screening with RSI, Order Flow, and Weekly MACD

Summary

This proposed Chinese equity screen combines three signals: RSI below 65, the ratio of outside-market to inside-market trading above 1.3, and weekly MACD above zero. The article describes the combination as a way to filter for stocks with favorable technical conditions and buying pressure. It supplies indicator and sample-code references, but gives no backtest, return series, or evidence that the selected stocks subsequently rose.

The author notes that technical indicators can fail, policy or broader market changes can disrupt price trends, and MACD signals may lag or misstate short-term momentum. Suggested improvements include weighting signals, examining their relationships, updating the rules as conditions change, and adding fundamental data. The sample implementation includes additional filters beyond the three headline conditions, so it does not cleanly isolate the stated screen. No position sizing, portfolio construction, or exit rules are specified.

Key ideas

• The screen requires RSI below 65, an outside-to-inside trading ratio above 1.3, and weekly MACD above zero.
• The document presents no measured results or backtest for the combined signals.
• Technical indicators can fail, and MACD may lag or provide misleading short-term readings.
• Signal weighting, relationship analysis, periodic updates, and fundamental inputs are suggested refinements.
• The sample implementation contains extra filters and leaves trading and risk rules unspecified.

Tags

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