A Short-Term MACD Reversal Screen After Seven Down Sessions

Summary

This stock screen combines turnover between 3% and 12%, seven consecutive sessions in which the close is below the open, and a 15-minute MACD histogram that is shortening. The setup seeks stocks that have fallen persistently but may be showing early signs of a rebound. The document also describes excluding two Chinese market boards in its sample formula and suggests checking company fundamentals alongside the technical conditions.

The provided formula and Python example illustrate how the conditions might be implemented, but they do not establish profitability or report backtest results. The example's MACD comparisons are implementation details and may not fully express every stated condition, so the screening logic should be verified against the intended data and bar intervals. The author cautions that short-interval MACD signals can be prone to misclassification and that technical indicators alone omit fundamental and industry information.

Key ideas

• The screen requires turnover between 3% and 12% and seven consecutive down sessions.
• A shortening MACD histogram on a 15-minute interval is used as a possible rebound signal.
• The example excludes two Chinese market boards.
• The document recommends considering fundamentals and industry conditions alongside technical signals.
• No performance evidence is provided, and short-interval indicator signals may be unreliable.

Tags

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