Combining Intraday MACD, Stock Amplitude, and ROE for Screening

Summary

This stock-screening approach combines three conditions: amplitude above 1, a shortening 15-minute MACD histogram below zero, and ROE above 15% for five consecutive years. The document presents amplitude as a way to find more volatile stocks, the MACD condition as a possible sign of a coming price change, and sustained ROE as a measure of profitability. It also provides example screening logic and a Python outline that checks historical price data, 15-minute MACD values, and recent ROE readings.

The document cautions that ROE alone can miss industry cycles, valuation, and financial risks, and that strong past profitability does not guarantee favorable future prospects. It suggests adding measures such as profit growth and gross margin, and accounting for industry characteristics. The examples leave important implementation details open: the amplitude threshold is described differently across the text and code, and the MACD condition's exact interpretation and timing are not fully specified. The author recommends adjusting conditions and time windows to fit the use case; no performance test or evidence of profitability is reported.

Key ideas

• The proposed screen combines stock amplitude, a 15-minute MACD histogram condition, and sustained ROE.
• The document treats amplitude as a way to identify more volatile stocks.
• It presents a shortening negative MACD histogram as a possible signal of changing price direction.
• High historical ROE does not account for valuation, industry cycles, or financial risk.
• Additional financial measures and industry-specific criteria may refine the screen.

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