Stock Screening with RSI, Three Bearish Sessions, and Rising MACD DEA

Summary

This stock-screening idea combines an RSI reading below 65, three consecutive bearish candlesticks, and a rising DEA component of MACD. It is presented as a way to find shares with constrained RSI readings and a short-term change in trend direction. The accompanying examples describe calculating RSI and MACD, checking prior candles, and filtering securities that meet the conditions; one example also mentions ranking candidates by trading volume.

The post offers no backtest, performance statistics, or evidence that the combined conditions improve returns. It cautions that a screen based heavily on technical indicators can miss fundamental considerations and can be affected by external events that change price trends. It suggests incorporating valuation or other fundamental measures and risk controls, but does not define or test those additions. The bearish-candle condition is described inconsistently in parts of the example, so implementation details would need careful verification.

Key ideas

• The screen requires RSI below 65, three consecutive bearish candles, and a rising MACD DEA.
• The stated purpose is to combine price weakness with a potentially improving short-term trend signal.
• An example proposes ranking qualifying stocks by trading volume.
• The post does not provide backtest results or evidence of profitability.
• Technical-only selection can overlook fundamentals and remains exposed to changing market conditions.

Tags

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