Small-Cap Stock Screening with RSI, MACD, and Profitability Filters

Summary

This stock-screening approach combines two technical indicators with basic company filters. It selects Chinese A-share companies with market capitalization below 10 billion yuan, positive profitability, RSI below 65, and MACD above its zero line. The post frames the RSI threshold as a way to avoid highly heated conditions and the positive MACD reading as evidence of an upward or consolidating market phase. It also includes a Python example intended to apply the filters to stock data.

The document gives no historical performance results or comparison with alternative screens. Its own caveats are that fixed technical rules may not adapt to changing markets, profitability alone does not establish financial strength or growth prospects, the size cap may exclude promising companies, and data quality can affect decisions. It recommends combining additional valuation and fundamental measures, adjusting conditions as markets change, and reviewing the model over time. The code and data-source assumptions are not validated in the post, so they should not be treated as a tested implementation.

Key ideas

• The screen requires RSI below 65 and MACD above zero.
• It limits candidates to companies below 10 billion yuan in market capitalization.
• It excludes firms with non-positive profitability.
• The post provides no backtest evidence and notes that fixed rules and data quality may limit reliability.

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