Combining RSI, Profit Growth, and MACD for Chinese Stock Selection

Summary

The document presents a stock screening approach that combines a momentum indicator, reported earnings growth, and a short-term MACD signal. Its revised version selects stocks with RSI below 65, parent-company net profit growth above 20% and no more than 100%, and a MACD histogram whose negative bars are shortening on a 30-minute interval. It also includes example formula and Python references, though these are implementation illustrations rather than reported test results.

The author frames the screen as a way to combine technical conditions with company performance, then notes that short intervals can be noisy and that earnings and chart signals do not capture a company’s strategy or future prospects. Suggested additions include valuation and return-on-equity measures, other indicators, and longer intervals. The document provides no backtest, benchmark, transaction-cost analysis, or evidence that the rules generate profitable trades. Its formula examples also warrant careful review before use, since the described growth bounds and code expressions may not align exactly.

Key ideas

• The revised screen combines RSI below 65 with bounded year-over-year parent-company profit growth.
• It requires the negative MACD histogram bars to shrink on a 30-minute interval.
• The strategy combines technical and fundamental filters but reports no performance evidence.
• Short interval signals can be noisy, and earnings growth alone does not measure valuation or long-term prospects.
• The example formulas should be checked for consistency with the stated screening rules.

Tags

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