Screening Stocks with RSI, Three Down Days, and Lagged MACD

Summary

This stock-selection rule looks for a relative strength index below 65, three consecutive sessions in which the close is below the open, and a MACD value below zero from two sessions earlier. The combination is presented as a way to identify stocks after a short-term pullback, using RSI and candle direction alongside a lagged momentum condition. The article provides indicator definitions and example implementations for a Chinese stock-screening platform and Python libraries.

No backtest results, benchmark, holding period, exit rule, or risk controls are reported, so the document does not establish that the conditions identify profitable reversals. It also notes that the approach relies on technical signals, omits fundamentals and industry context, and may include overlapping indicators. The source recommends broader analysis, but does not define how to combine those additional inputs or evaluate the resulting screen.

Key ideas

• The screen requires RSI below 65 and three consecutive sessions closing below their opens.
• It also requires MACD to have been below zero two sessions earlier.
• The rule is framed as a search for possible entries after a short-term pullback.
• The source supplies example indicator implementations but no performance evaluation.
• Fundamentals, industry context, overlapping signals, and market noise are stated limitations.

Tags

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