Stock Screening with RSI, Shortening MACD Bars, and 10-Day Returns

Summary

This document outlines an equity screening rule combining three conditions: RSI below 65, a shortening MACD histogram on a 15-minute interval, and a positive 10-day gain below 35%. The selected stocks form a candidate pool; the document does not specify entry, exit, or position-sizing rules. It also gives a sample implementation, though the code’s RSI calculation uses daily data while its MACD and return checks use 15-minute data, so it does not consistently implement the stated conditions.

The accompanying discussion says the return band is intended to avoid stocks that have risen too far or have weak recent performance, while RSI and MACD are used to assess timing. It warns that short-term technical filters can lag or misfire, may select volatile stocks, and omit fundamentals and longer-term performance. Suggested refinements include adding volume or other indicators and reviewing company results and industry conditions. No backtest or performance evidence is provided, so the rule is a screening proposal rather than a validated strategy.

Key ideas

• The screen requires RSI below 65, a shortening 15-minute MACD histogram, and a positive 10-day return below 35%.
• The output is a candidate stock pool, with no explicit trade execution or risk sizing rules.
• The example calculates RSI from daily data but MACD and returns from 15-minute data, which differs from the stated combined screen.
• Technical indicators may lag, miss valuable stocks, or select volatile names, and the proposal lacks backtest evidence.

Tags

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