Combining RSI, Earnings Growth, and MACD for Stock Screening

Summary

This stock-selection proposal combines technical filters with reported earnings growth. It looks for RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%, and MACD above its zero axis. The accompanying code illustrates calculating RSI and MACD from closing prices and applying the criteria to stock data; a separate formula example describes a MACD crossover condition.

The article characterizes the approach as short-term momentum and says it may face difficulty in bear or sideways markets. It also cautions that MACD does not always provide reliable signals and suggests accounting for broad-market and industry trends. The material does not show a backtest, explain reporting-data timing, or resolve inconsistencies between the prose and code: the code checks an MACD line crossover, while the stated final rule refers to MACD being above zero. Treat the screen as a proposal requiring precise definitions and validation, not evidence of profitability.

Key ideas

• The proposed screen combines RSI below 65 with a bounded range of year-over-year net-profit growth.
• It adds a MACD-based condition intended to identify positive momentum.
• The examples calculate indicators and filter a stock dataset, but the stated MACD rule and code conditions differ.
• The article warns that momentum signals may struggle in bear or sideways markets and provides no backtest evidence.

Tags

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