RSI and Prior MACD Filter for Beverage and Alcohol Import-Export Stocks

Summary

This Chinese A-share screening idea combines three conditions: a 14-period RSI below 65, membership in the beverage and alcohol import-export industry, and a MACD value below zero two trading days earlier. The note frames the filter as a way to find stocks that may be relatively subdued while retaining possible reversal potential. It provides formula and Python examples for expressing the industry and lagged-MACD checks, but reports no backtest, selected-stock results, or performance evidence.

The author cautions that restrictive filters may produce few candidates, whose volatility could raise the risk of failing to take profits in time. Suggested refinements include adding a market-capitalization screen, setting stop-loss and profit-taking levels, and limiting concentration in any one stock or industry. These are general risk suggestions; the document does not specify thresholds, position rules, or a validation process. The screening rationale should therefore be treated as a hypothesis rather than a demonstrated source of reversals.

Key ideas

• The screen requires RSI below 65 and a specific beverage and alcohol import-export industry classification.
• It also requires MACD to have been below zero two trading days earlier.
• The author proposes the conditions as a way to identify possible reversal candidates but gives no performance evidence.
• The note recommends risk controls such as stops and limiting concentration.

Tags

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