A Large-Cap Stock Screen Using Intraday MACD Histogram Contraction

Summary

The document presents an equity screening rule combining three conditions: intraday amplitude above a threshold, circulating market capitalization above a stated floor, and a shortening MACD histogram bar on a 15-minute chart. It interprets histogram contraction during a decline as a possible bottom-fishing signal, while the amplitude and capitalization filters are intended to select actively traded, larger companies. It includes formula and Python examples for identifying candidates.

The proposed rule is not supported by reported backtest results or performance statistics. The source itself cautions that MACD is lagging and that the screen neglects fundamentals and financial data. It suggests combining technical signals with broader company and industry analysis, diversifying across sectors, and considering other indicators. The examples also depend on external data access and should be checked carefully before use, including their data fields and indicator conventions.

Key ideas

• The screen combines price amplitude, circulating market capitalization, and a 15-minute MACD histogram contraction.
• The stated interpretation is that a shrinking negative histogram may indicate a potential rebound entry.
• The document gives formula and Python examples for applying the stock filters.
• It warns that MACD is lagging and that technical screening alone omits fundamental information.
• No backtest evidence or risk-adjusted performance results are provided.

Tags

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