Combining RSI, Revenue Growth, and Shortening MACD Bars in a Stock Screen

Summary

This note outlines a stock screen combining three conditions: RSI below 65, revenue in 2021 more than 1.1 times revenue in 2018, and shrinking negative MACD bars on a 15-minute interval. It presents the approach as a mix of fundamental growth and technical signals, with the MACD condition intended to identify weakening downside momentum. It also gives the standard exponential-average construction for MACD and recommends considering other indicators and position sizing.

The document supplies no backtest, sample trades, or evidence that these filters produce positive returns. It cautions that fast market changes and sideways trading can undermine the signals, and recommends parameter review and broader fundamental checks. The implementation sketch does not cleanly match the stated strategy: it uses historical data inconsistently for revenue, does not clearly compute a 15-minute MACD, and includes conditions that may not represent shortening negative bars. Results from that code should therefore not be treated as validation of the stated screen.

Key ideas

• The proposed screen combines an RSI ceiling, multi-year revenue growth, and shrinking negative MACD bars.
• The MACD condition is described on a 15-minute interval, while the sample implementation does not clearly use that interval.
• The note recommends reassessing indicator thresholds and considering other technical and fundamental inputs.
• It identifies rapid regime changes and sideways markets as sources of failure.
• No performance evidence is reported, and the sample code has implementation inconsistencies.

Tags

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