Combining RSI, MACD, and Revenue Growth in an A-Share Screen

Summary

This A-share screening approach combines a relative strength index below 65, MACD above its zero line, and 2021 revenue more than 1.1 times 2018 revenue. The technical filters are presented as a way to avoid an overextended reading while selecting for positive momentum; the revenue comparison is meant to capture business growth. The article outlines the indicators and includes sample formulas and Python intended to implement the screen, but it reports no backtest, returns, or other empirical validation.

The author notes that revenue alone says little about profitability, leverage, or the quality of reported growth, and that sector differences can make revenue comparisons less informative. Market-wide conditions and short-term price volatility are additional limitations. The sample implementation contains apparent calculation and data-handling problems, and the headline does not state the same threshold as the body. Treat the rules as a screening concept rather than a verified strategy, and validate the data and calculations before drawing conclusions.

Key ideas

• The proposed screen requires RSI below 65, positive MACD, and 2021 revenue exceeding 1.1 times 2018 revenue.
• The revenue ratio is intended to identify growth, but does not measure profitability or balance-sheet strength.
• The author suggests adding financial, technical, industry, and market context to the screen.
• No performance evidence is provided, and the sample code has apparent calculation and data-handling issues.

Tags

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