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Stock Screening with RSI, Order-Book Imbalance, and Positive MACD

Article SuperMind
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Summary

This stock-selection rule requires a 14-period RSI below 65, displayed best-bid volume greater than best-ask volume, and a positive daily MACD reading. It combines a momentum oscillator, a snapshot of near-touch supply and demand, and a trend-oriented indicator to identify stocks the author considers potential rising candidates. Formula and Python examples show how the three conditions can be combined into a filter.

The article offers no backtest, sample, or performance evidence, and the claim of upside potential is not substantiated. It warns that the rule ignores company fundamentals and broader market direction, and that market sentiment can undermine technical signals. Best bid and ask sizes may be transient and do not by themselves establish durable buying pressure. The author suggests adding fundamental, market, or sector filters and testing parameter choices, but provides no validated optimization.

Key ideas

  • The screen selects stocks with RSI below 65, greater best-bid than best-ask volume, and positive daily MACD.
  • It combines an oscillator, displayed order-book quantities, and a trend indicator.
  • The article provides example formula and Python implementations but no performance evidence.
  • The rule omits fundamentals and broader market context.
  • Displayed bid and ask sizes can change quickly and may not represent persistent demand.

Tags

EquitiesChina marketsTechnical indicatorsMomentumMarket microstructure

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