Combining RSI, Short-Interval MACD, and Moving Averages for Stock Selection

Summary

This stock screen combines a daily trend filter with shorter-interval momentum signals. It selects shares whose 20-day moving average is above the 120-day average, whose 15-minute MACD histogram is shrinking while negative, and whose RSI is below 65. The stated rationale is to favor an upward broader trend while looking for easing short-term selling pressure, with RSI used as an additional filter.

The document gives an illustrative implementation using historical price data and standard technical indicator calculations, but it provides no backtest results or performance evidence. Its discussion warns that the screen relies only on technical information and may omit company finances and performance. It also says that suitability can vary by industry and market conditions, and suggests considering macroeconomic, sector, and company fundamentals alongside technical signals.

Key ideas

• The screen requires the 20-day moving average to exceed the 120-day moving average.
• It looks for a shrinking negative MACD histogram on a 15-minute interval.
• It filters for RSI below 65.
• The document offers no performance evidence and notes that technical-only selection may not be sustainable.

Tags

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