Screening Stocks with Positive MACD, Rising Moving Averages, and RSI Below 65

Summary

This document outlines a stock-selection screen requiring MACD to be above zero, moving averages to spread upward on the current day, and RSI to remain below 65. It presents MACD as a trend filter, the moving-average condition as a signal of upward alignment, and the RSI threshold as a way to avoid selecting stocks that may already be overheated. It also gives example indicator formulas and a Python sketch for calculating MACD, moving averages, and RSI before combining the conditions. The example includes an unfinished additional condition, and some formula details are inconsistent or underspecified, so it would need careful review before use.

The article notes that an RSI reading below the threshold may be temporary and that MACD and moving averages should be considered alongside other information. It suggests adding volume, other moving-average measures, and volatility analysis. Although it discusses possible refinements, it reports no backtest, returns, or evidence that the combined screen predicts future performance. The rules therefore describe a screening hypothesis, not a demonstrated trading strategy.

Key ideas

• The screen requires MACD above zero, upward-spreading moving averages, and RSI below 65.
• The indicators are presented as filters for trend direction, alignment, and potential overbought conditions.
• The example code sketches indicator calculations but leaves an additional condition unfinished.
• The article recommends considering volume, other moving averages, and volatility when assessing candidates.
• It provides no test results establishing the screen’s predictive value.

Tags

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