Combining Institutional Flows and 15-Minute MACD for Stock Selection

Summary

This short-term stock screen combines a daily position-share increase above 5%, positive institutional direction, and a 15-minute MACD histogram whose negative bars are becoming shorter. The article interprets the flow measures as signs of buying interest and the contracting negative histogram as a possible near-term rebound signal. It proposes using the three conditions together, with company financials and other fundamentals considered in an additional assessment.

The document supplies no historical test, performance statistics, or detailed trading rules for entries, exits, and position sizing. It cautions that the screen focuses on short-term behavior and omits longer-term trends and company fundamentals, and that large market swings can make selections unreliable. The sample code does not clearly implement the stated signals: it compares a MACD output to zero rather than calculating a shrinking negative histogram, and the flow calculations are not fully explained. The screen therefore needs precise definitions and validation before use.

Key ideas

• The proposed screen combines position-share growth above 5%, positive institutional direction, and a contracting negative 15-minute MACD histogram.
• The MACD condition is intended to flag a possible short-term rebound.
• The article recommends considering company fundamentals in addition to short-term signals.
• It provides no backtest or complete rules for trade execution and risk management.
• The example code does not clearly match the stated histogram and flow conditions.

Tags

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