A MACD Rebound Screen Using Seven Down Closes

Summary

This Chinese stock-screening article combines a positive MACD reading with seven consecutive falling closes and a shortening MACD histogram on a 15-minute chart. The proposed interpretation is that shrinking negative histogram bars may signal weakening downside momentum and a possible rebound. It also outlines proposed filters involving fundamentals, liquidity, market conditions, moving averages, and stock size, though these are not all consistently represented in the stated final screening rule or example code.

The document provides indicator formulas and a Python example, but no backtest results or evidence that the signal predicts profitable reversals. The code uses a fixed historical date and many data calls, and some filters appear inconsistent with the prose. The pattern is therefore best treated as a hypothesis to test with point-in-time data, realistic execution costs, and controls for selection bias. A positive MACD value and a shrinking histogram alone do not establish that a stock has bottomed.

Key ideas

• The screen requires MACD above zero, seven consecutive declining closes, and a shortening 15-minute MACD histogram.
• A shorter negative histogram is presented as a possible sign that selling momentum is easing.
• The article suggests adding fundamental, liquidity, market, and sector checks to reduce blind spots.
• The source provides sample formulas and code but reports no performance testing or trading results.

Tags

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