Combining Intraday MACD Histogram Contraction with Stock Amplitude and Listing Age

Summary

This document proposes screening stocks for amplitude above 1, a contracting negative MACD histogram on a 15-minute chart, and a listing age beyond a chosen threshold. The intended interpretation is that a shrinking negative histogram may signal a possible change in price direction, while higher amplitude identifies more active price movement. The listing-age condition is presented as a way to select companies with more operating history for further review. Formula and Python examples outline ways to combine these filters, including a sample date cutoff for the listing-age test.

No historical results, validation, or evidence of improved returns are provided. The examples also leave important implementation details unclear: the threshold is unspecified, and the Python amplitude filter uses turnover ratio rather than the stated price amplitude. A contracting negative histogram alone does not establish that a reversal will follow. The document cautions that listing age does not guarantee stable operations or predictable earnings, and recommends considering fundamentals, industry and macroeconomic context, and additional data only after evaluating the strategy carefully.

Key ideas

• The proposed screen combines stock amplitude, a contracting negative MACD histogram on a 15-minute chart, and listing age.
• A shrinking negative histogram is treated as a possible sign of a price-direction change, not as confirmation of a reversal.
• The listing-age threshold is unspecified, and the sample code uses a date cutoff as an example.
• The Python example filters on turnover ratio where the stated logic calls for amplitude.
• The document gives no performance evidence and advises combining technical analysis with fundamental and economic context.

Tags

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