A Short-Term Stock Screen Using MACD, Amplitude, and Trading Pressure

Summary

This proposed short-term stock screen requires amplitude above 1, a shrinking negative MACD histogram on a 15-minute chart, and an external-to-internal trading volume ratio above 1.3. The note interprets the conditions as combining elevated price movement, a possible change in short-term momentum, and buying pressure. It provides sample indicator formulas and a Python sketch for filtering stocks, checking the MACD histogram, and ranking candidates by trading amount.

No backtest or performance results are reported. The article cautions that market shocks and high turnover can make the signals unreliable, and recommends risk controls and capital management. There are implementation mismatches: the Python example filters on turnover ratio rather than the stated amplitude, and the prose describes a MACD histogram signal whose exact timing and formula are not clearly established by the examples. The trading-pressure ratio also depends on data definitions and may be noisy. The proposed screen should therefore be treated as a rough signal recipe rather than a validated strategy.

Key ideas

• The screen combines amplitude, a contracting negative 15-minute MACD histogram, and an external-to-internal volume ratio above 1.3.
• The author interprets the conditions as volatility, potential momentum change, and buying pressure.
• The provided implementation examples do not consistently match the stated amplitude condition.
• The note supplies no empirical results and warns about market shocks and high-turnover signals.
• Risk controls and careful validation are needed before using the screen.

Tags

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