A Stock Screen Using Daily Range, a KDJ Cross, and MACD Histogram Conditions

Summary

This post proposes combining a daily high-low range filter, a newly formed KDJ crossover, and a 15-minute MACD condition as a stock-selection rule. It interprets the range as a volatility screen, the crossover as a possible shift in short-term direction, and the MACD condition as a sign that selling pressure may be easing. Formula and Python examples are included to show how the conditions might be encoded; the post also mentions adding other indicators or fundamental analysis and defining exit controls.

No backtest, transaction-cost analysis, benchmark, or measured success rate is presented. The stated risks include changing market conditions, false signals, and unexpected declines or suspensions. The code also leaves room for interpretation: the MACD comparison shown is not a direct measure of a histogram becoming shorter in every market state, and the post does not clearly demonstrate consistent use of the 15-minute timeframe in both examples. The rule should therefore be treated as an unvalidated screening idea requiring precise definitions and testing.

Key ideas

• The proposed screen combines a daily range condition with a recent KDJ crossover and a MACD-based condition.
• The post interprets the crossover and MACD change as possible short-term signs of improving price pressure.
• It recommends considering additional indicators, company information, and exit controls.
• No empirical performance evidence or transaction-cost analysis is supplied.
• The examples require clarification of the MACD condition and timeframe before implementation.

Tags

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