Combining MACD Conditions and Order Flow for Stock Selection

Summary

This stock-selection idea combines three filters: MACD above its zero line, a price-change measure multiplied by large-order net volume, and a 15-minute MACD histogram whose green bars are becoming shorter. The accompanying discussion interprets the zero-line condition as a broader upward trend, the order-flow measure as a sign of fund inflow, and shrinking negative histogram bars as a possible short-term pullback. It also offers formula and Python examples, though the examples do not consistently implement the stated order-flow measure or histogram condition.

The author flags reliance on technical signals, fast changes in intraday readings, and the need for stop-loss and broader risk controls. Suggested additions include other indicators and fundamental factors. No backtest, sample, or performance figures are supplied, and the thresholds and data definitions are not justified. The selection rules should therefore be treated as an unvalidated screening concept rather than evidence of a profitable strategy.

Key ideas

• The screen requires MACD above zero, an order-flow-related price-change filter, and shortening green MACD bars on a 15-minute chart.
• The proposed interpretation combines trend, trading activity, and a possible short-term pullback.
• The code examples do not consistently match the stated order-flow and histogram rules.
• The document recommends broader risk controls and additional factors but provides no backtest evidence.

Tags

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