Equity Screening with RSI, Moving Average, and MACD Conditions

Summary

This article describes a Chinese equity screening idea that combines a relative strength index threshold, membership in the beverage and alcohol import-export industry, and an upward-moving 30-day average. It then proposes a stricter version: require the 30-day average to cross above the 60-day average, include a crossover between the MACD lines, and keep the closing price between the 5-day and 10-day averages. It supplies example indicator logic for implementing these conditions.

The author frames the screen as a mix of technical and industry filters and warns that the initial rules are simple, rely heavily on a limited set of indicators, and may overlook company fundamentals or other price signals. Suggested improvements include adding indicators and fundamental factors, refining trend measures, and guarding against overfitting historical data. No backtest results or evidence of predictive performance are provided, and the proposed final rules are not accompanied by detailed entry, exit, or position-sizing methods. The screen is therefore a candidate for research rather than a validated strategy.

Key ideas

• The initial screen combines an RSI ceiling, a beverage and alcohol import-export industry filter, and an upward 30-day average.
• The proposed expanded screen adds a 30-day/60-day moving-average crossover and a MACD-line crossover.
• It also constrains the closing price to lie between the 5-day and 10-day averages.
• The article identifies limited indicators and missing company-level analysis as weaknesses.
• It recommends broader factor consideration and care against overfitting, but gives no performance validation.

Tags

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