Stock Screening with RSI, Concentration, and Short-Term MACD

Summary

This Chinese stock-screening post combines three filters: RSI below 65, an industry concentration ratio above 70% or below 20%, and a shortening MACD histogram on a 15-minute chart. It presents the approach as a way to find stocks with improving momentum while avoiding some risk, and gives indicator-formula and Python examples for applying the conditions.

The post warns that RSI can lag and that concentration and MACD signals may mislead during unusual market moves. It suggests adding other technical signals, sector activity, or capital-flow measures, but does not specify or test those additions. The examples also do not cleanly match the stated rules: the Python concentration bounds include values between 20% and 70%, and its MACD test checks whether the histogram is positive rather than shortening. No backtest results, transaction costs, or risk-adjusted performance are provided, so the rules should be treated as an unvalidated screening idea.

Key ideas

• The screen combines RSI below 65 with an industry concentration ratio outside the 20% to 70% band.
• It also seeks stocks whose 15-minute MACD histogram bars are becoming shorter.
• The post identifies lagging RSI and unstable market conditions as potential sources of false signals.
• Its example implementations do not consistently represent the written screening conditions.

Tags

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