Stock Screening With RSI, Seven Losing Sessions, and Negative MACD

Summary

This technical stock screen combines an RSI reading below 65 with seven consecutive declining sessions and a MACD value below zero two days earlier. It is framed as a way to identify stocks at relatively low levels while excluding some downward-trending cases, though the document does not define precisely how the losing-session sequence or MACD timing should be calculated. It gives indicator formula references and a Python example, but no backtest, return data, or evidence of predictive performance.

The author cautions that the screen omits company fundamentals such as earnings and financial condition, and that reliance on a small set of signals may contribute to excessive trading and risk. Suggested additions include market and industry context, further technical measures, fundamental data, and macroeconomic conditions. Those suggestions are not tested in the document, and the sample implementation contains data and calculation assumptions that would need independent verification before use.

Key ideas

• The proposed screen uses RSI below 65, seven consecutive losing sessions, and MACD below zero two days earlier.
• The method relies on technical signals and does not evaluate company fundamentals.
• The document gives formula references and sample implementation guidance without reporting test results.
• The author warns that a narrow signal set can lead to excessive trading and investment risk.
• Market, industry, fundamental, and macroeconomic context are suggested as additional filters.

Tags

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