A MACD and Price-Range Screen for Short-Term Stock Selection

Summary

This document outlines a short-term stock screen that combines price range with MACD conditions across two timeframes. It requires amplitude above 1%, daily MACD above zero, and a 15-minute MACD histogram that is negative but becoming less negative. The combination seeks stocks with positive daily trend context and a possible short-term rebound in momentum.

The text gives formula and Python-style implementation references, then discusses limitations: short-term indicators can react to isolated events, the rules omit fundamental analysis, and following the screen without regard to an investor’s circumstances can lead to poor fit. It suggests adding valuation and balance-sheet measures, supplementary indicators, moving averages, and volume to create a broader selection model. No backtest results or evidence of predictive performance are provided, and implementation details may differ across platforms and indicator conventions.

Key ideas

• The screen requires price amplitude above 1%, positive daily MACD, and a shrinking negative MACD histogram on a 15-minute chart.
• The rules combine a daily trend filter with a shorter-term momentum condition.
• The document warns that short-term signals can be disrupted by individual events and omit company fundamentals.
• It proposes adding fundamental, moving-average, volume, or other technical measures, but provides no performance validation.

Tags

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