A Short-Term Stock Screen Using MACD Contraction, Daily Loss, and Position Changes

Summary

This note outlines a short-term equity screen using three conditions: a 15-minute MACD histogram whose negative bars are getting shorter, a daily maximum decline between 4% and 5%, and a position-change share above 5%. The author interprets the histogram change as a possible turn toward upward momentum, the decline as elevated price movement, and the position measure as possible large-investor buying. The article later proposes adding a moving-average bullish cross and an expanding Bollinger Band pattern.

The article provides an illustrative data-processing sketch but no backtest, candidate list, or performance evidence. Its own cautions are material: position increases can reflect distribution rather than accumulation, a sharp decline may signal broad market stress rather than opportunity, and intraday indicators do not establish a long-term trend. The code sketch also appears not to calculate the stated histogram shortening or daily maximum-decline range directly, so it should not be treated as a validated implementation.

Key ideas

• The proposed screen combines shortening negative MACD bars on a 15-minute chart, a daily maximum decline between 4% and 5%, and position changes above 5%.
• Shortening negative MACD bars are interpreted as a possible near-term momentum reversal.
• The article suggests adding a bullish moving-average cross and expanding Bollinger Bands.
• Position increases and large declines can have alternative explanations and do not ensure a rebound.
• The code example does not clearly implement all stated conditions, and no performance tests are reported.

Tags

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