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Combining RSI, Seven Down Days, and Weekly MACD for Stock Screening

Article SuperMind
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Summary

This A-share screening proposal combines three technical conditions: RSI below 65, seven consecutive sessions in which the close is below the open, and weekly MACD above zero. The text gives indicator definitions and an example implementation, framing the weekly MACD condition as a trend filter alongside short-term weakness. It also recommends considering company, industry, and size characteristics and periodically reviewing parameters through backtesting.

No returns, benchmark comparisons, or test design are reported, so the screen's claimed selection potential is unsupported by evidence in the document. The examples also leave implementation ambiguities: the weekly MACD condition is described as a positive difference between DIFF and DEA, which is not the same as either line being above zero, and the sample data references should be checked. The article warns that technical screens can miss fundamentals and may overemphasize short-term price behavior.

Key ideas

  • The proposed screen requires RSI below 65 and seven consecutive down sessions.
  • It adds a weekly MACD condition intended to filter for a broader trend.
  • The document suggests supplementing technical signals with fundamental and industry factors.
  • It recommends backtesting and adjusting parameters as market conditions change.
  • The MACD wording and sample implementation contain ambiguities, and no results are reported.

Tags

EquitiesChina marketsTechnical indicatorsMomentumBacktesting

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