Screening Stocks with Weekly MACD, RSI, and Prior-Year Gains

Summary

This stock screen combines three filters: RSI below 65, weekly MACD above zero, and strong gains during 2021. The document presents these as signs of favorable technical conditions and positive price momentum. Its sample Python outline calculates RSI and MACD and measures price change over 252 periods, then applies threshold filters. The described selection rule is intended to identify stocks with an established upward trend while excluding some highly overbought candidates.

The post warns that the screen relies heavily on technical signals and past returns. It does not account for company fundamentals or changing macroeconomic conditions, and selecting stocks for recent gains can make the approach vulnerable to reversal or reduced effectiveness. It suggests adding valuation measures such as price-to-earnings and price-to-book ratios, alongside broader economic context. No backtest results, performance statistics, benchmark comparison, or implementation details for calculating weekly MACD are provided, so the screen should be treated as a proposed selection idea rather than demonstrated evidence of an effective strategy.

Key ideas

• The screen requires RSI below 65 and weekly MACD above zero.
• It also selects stocks with strong gains during 2021.
• The code outline uses RSI, MACD, and a 252-period price change as filters.
• The post cautions that technical signals and past gains omit fundamentals and macroeconomic conditions.
• Valuation measures and broader economic context are proposed as additional screening inputs.

Tags

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