Chinese Stock Screening with RSI, Profit Growth, and Rising MACD Signal

Summary

This stock screen combines a technical filter with a fundamental growth condition. It selects shares with RSI below 65, parent-company net profit growth above 20% and no more than 100%, and a rising MACD signal line (DEA). The stated rationale is to seek stocks with moderate RSI readings, substantial but bounded earnings growth, and improving recent momentum.

The document gives SQL-style and Python-style examples, but their implementation details do not fully match the prose: for example, the examples compare MACD and its signal as well as checking the signal line's direction. It reports no performance results. The author warns that RSI and earnings growth may not predict future price moves and that MACD can lag, creating missed or incorrect selections. Suggested refinements include testing additional technical and valuation measures, adjusting thresholds, and considering industry, policy, and broader market conditions.

Key ideas

• The screen requires RSI below 65, parent-company net profit growth above 20% and at most 100%, and a rising MACD signal line.
• The method combines a technical momentum condition with a fundamental earnings-growth filter.
• The code examples include additional MACD comparisons and universe filters beyond the core rule.
• The document gives no evidence of returns or risk-adjusted performance.
• RSI, earnings growth, and lagging MACD signals can still produce false or missed selections.

Tags

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