Stock Screening with RSI, Market Capitalization, and Daily MACD

Summary

This Chinese stock-selection proposal screens for a 14-period RSI below 65, a circulating market capitalization from 5 billion to 10 billion yuan, and a daily MACD value above zero. It presents RSI as a way to avoid very overbought conditions, market capitalization as a size filter, and positive MACD as a trend indicator. The code reference further describes sorting qualifying stocks by daily percentage change and selecting up to five when at least five pass the filters.

The post notes that the screen does not evaluate fundamentals and that daily MACD may lag, potentially retaining stocks after their trend has weakened. It suggests adding financial and competitive analysis, other technical measures, and signals from longer time frames. No backtest results, return statistics, or evidence of predictive power are provided. The screen is a set of candidate-selection rules, not a complete portfolio or risk-management plan, and the document’s rationale does not establish that the filters identify undervalued or profitable stocks.

Key ideas

• The screen requires RSI below 65, circulating market capitalization of 5–10 billion yuan, and daily MACD above zero.
• The proposal treats RSI as an overbought-condition filter and positive MACD as a trend signal.
• Its code reference ranks qualifying stocks by percentage change and selects up to five if enough candidates qualify.
• The screen omits fundamentals, and daily MACD can lag changes in price direction.
• The post recommends combining technical signals with fundamental and multi-time-frame analysis, but reports no strategy performance.

Tags

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