Combining MACD Momentum, Price Range, and Moving Averages in a Stock Screen

Summary

This stock screen combines a price-range filter, a 15-minute MACD histogram condition, and a moving-average trend filter. It seeks stocks with a range above one, a shrinking negative MACD histogram, and a short-term average above a longer-term average. The article’s final description changes the long-term average from 120 days to 60 days, while its formula section still specifies 120 days, so the intended rule is not fully consistent.

The document explains the filters as a way to find volatile stocks with improving short-term momentum in a stronger trend. It gives sample formulas and Python-like implementation guidance, but no backtest or evidence of returns. The Python example also uses turnover ratio for the range filter and includes holder-based conditions that do not match the stated moving-average rule. The article flags lag and omitted fundamentals or liquidity as limitations; the screen needs careful implementation and independent testing.

Key ideas

• The proposed screen combines price range, a shrinking negative 15-minute MACD histogram, and a moving-average trend filter.
• The stated long-term average differs between the final rule and the formula section.
• The Python example does not faithfully implement all of the stated screening conditions.
• The document offers no performance evidence and notes that moving averages can lag.
• Fundamental, liquidity, industry, and market context may affect how useful the screen is.

Tags

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