Stock Screening with RSI, Order-Book Volume, and Prior MACD

Summary

This article describes a daily stock screen combining RSI below 65, first-level bid volume greater than ask volume, and a MACD condition from an earlier session. Its code examples also include a daily price-gain filter above 2%, so the implemented screen has an additional momentum-like requirement beyond the headline rules. The examples use a 14-period RSI and standard MACD settings, but the article does not provide backtest results or performance evidence.

There is a material inconsistency in the MACD explanation: the prose says to remove stocks whose earlier MACD is below zero, while the sample code explicitly requires the earlier MACD to be below zero, alongside DIF below DEA. Those conditions select such stocks rather than exclude them. The write-up also cautions that technical-only screening omits company fundamentals and can be vulnerable to unusual market moves. It suggests combining technical and fundamental filters and adding risk controls, but gives no concrete implementation or evaluation of those changes.

Key ideas

• The proposed screen combines RSI below 65 with bid-side volume exceeding ask-side volume.
• The headline also uses an earlier-session MACD condition, though its description conflicts with the supplied code.
• The code adds a daily price increase threshold above 2% to the other filters.
• The article provides no backtest evidence and warns that technical filters omit fundamental information and risk controls.

Tags

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