Mainland China Stock Screen Using RSI, Daily Gains, and MACD

Summary

This note outlines a mainland China stock screen requiring RSI below 65, a daily gain above 1%, main-board eligibility, and MACD above zero. It presents RSI as a way to identify comparatively weak stocks that may rebound, the daily gain as a short-term strength signal, and MACD above zero as confirmation of an upward price trend. The article includes sample formula and Python references, with the latter also describing a market-cap ranking.

No measured results or backtest are reported, so the stated aim of short-term gains is not evidence of profitability. The article cautions that the rules emphasize market activity and price movement, may incur trading costs, and do not assess company fundamentals. It also notes that MACD is lagging. Suggested additions include valuation and earnings measures, volatility data, and fuller company and industry analysis, but these are recommendations rather than tested improvements. The screening description and implementation examples vary in some details, so the exact universe and ranking rule are not fully settled.

Key ideas

• The stated screen requires RSI below 65, daily gain above 1%, main-board eligibility, and MACD above zero.
• The rules combine a rebound condition, short-term price strength, and a trend filter.
• The article reports no backtest or measured profitability evidence.
• The author notes potential trading costs, lagging MACD signals, and missing fundamental analysis.
• Suggested valuation and volatility filters are not evaluated in the document.

Tags

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