Stock Screening with RSI, Three Down Days, and Positive Weekly MACD

Summary

The post proposes a technical screen for equities using three conditions: a 14-period RSI below 65, three consecutive declining sessions, and weekly MACD above zero. It presents the combination as a way to avoid stocks that have recently risen sharply while retaining a positive longer-term trend. Example indicator formulas and a Python-style implementation are included.

The written rule and examples do not align cleanly: the candle comparisons shown require closes above opens, which indicates bullish candles rather than three down days, and the MACD shifts do not clearly establish a weekly calculation. The post provides no backtest, portfolio rules, transaction-cost analysis, or performance evidence. It also acknowledges that technical signals may miss changes in sentiment and ignore company fundamentals, so the proposed screen should be treated as an unvalidated selection heuristic.

Key ideas

• The proposed screen combines RSI below 65, three consecutive down days, and MACD above zero on a weekly basis.
• The stated rationale pairs a positive longer-term trend with a recent pullback.
• The example candle comparisons appear to identify up days, conflicting with the written three-down-day rule.
• The MACD example does not clearly demonstrate weekly aggregation.
• The post supplies no performance tests and warns that technical signals omit company fundamentals.

Tags

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