Combining RSI, Consecutive Down Days, and Intraday MACD Contraction

Summary

This Chinese stock-screening concept combines an RSI reading below 65, seven consecutive sessions in which the close is below the open, and a shrinking negative MACD histogram on a 15-minute chart. The RSI threshold is intended to avoid an overbought reading, while the run of down sessions and contracting MACD bars are used to identify a possible change in short-term selling pressure. The document gives formulas for RSI and MACD and includes sample code, but its code's down-day condition appears inverted: it skips a symbol when all seven sessions meet the stated condition. That inconsistency makes the implementation unreliable without correction.

No backtest or outcome data are presented. The author recognizes that the signals are short-term, can be noisy, and omit fundamentals. Suggested extensions include adding financial measures, adjusting MACD parameters through historical testing, and comparing multiple timeframes. Those ideas are recommendations rather than demonstrated improvements, and the document does not establish that the screen predicts a reversal or return.

Key ideas

• The stated screen uses RSI below 65, seven down sessions, and a contracting negative MACD histogram on a 15-minute chart.
• The indicators are meant to describe potential oversold conditions and easing short-term downside momentum.
• The sample code appears to reject stocks that satisfy the seven-session down-day rule.
• The document gives no test results and identifies short-term signal noise and missing fundamental analysis as limitations.
• Parameter and multi-timeframe changes are proposed but not validated.

Tags

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