A Stock Screen for Sharp Declines and Weakening MACD Momentum

Summary

This article outlines an equity screen combining daily price conditions with a 15-minute MACD histogram signal. It selects stocks with an intraday range above 1%, a session low between 4% and 5% below the prior close, and a green MACD histogram that is shortening. The author interprets the narrowing negative histogram as possible easing of selling pressure and a potential rebound setup.

The article includes an indicator formula and illustrative Python-style screening logic, along with extra sample filters for company size, valuation, and data history. Those code details do not fully match the stated screen: for example, the sample checks do not explicitly enforce the full stated decline band, and the histogram comparison may not capture the described green-bar condition. No backtest or performance evidence is provided. The article cautions that short-term technical signals can fail, declines may persist, and liquidity and position risks require attention.

Key ideas

• The screen combines a large daily range with a session low between four and five percent below the prior close.
• A shortening negative MACD histogram on a 15-minute chart is treated as a possible sign of fading selling pressure.
• The article presents sample indicator and screening logic, but parts of the code do not precisely implement the written criteria.
• It offers no empirical performance results and warns that short-term signals can misidentify persistent declines.

Tags

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