Screening Chinese Stocks with RSI, MACD Signal, and Dividend Ratio

Summary

This document describes a Chinese equity screen requiring RSI below 65, a rising MACD signal line (DEA), and a dividend ratio above 25% for 2019. It explains RSI as an overbought or oversold gauge, DEA as a trend signal, and the historical dividend ratio as an indicator of shareholder distributions. A Python example outlines applying the conditions across stocks, using historical prices and dividend data.

The post offers no backtest results or evidence that the screen outperforms a benchmark. It notes that the rules rely on only a few technical and dividend inputs, omit broader company fundamentals, and may misread a dividend ratio that reflects financial conditions rather than future returns. It suggests adding fundamental and flow data and examining dividend trends. The stated dividend threshold refers specifically to 2019, limiting how directly the screen applies to other periods.

Key ideas

• The screen selects stocks with RSI below 65, rising DEA, and a 2019 dividend ratio above 25%.
• RSI and DEA supply technical conditions, while the dividend ratio adds a distribution-related criterion.
• The example applies the conditions to historical stock prices and dividend records.
• The post provides no performance test, and its limited inputs may overlook company fundamentals.

Tags

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