Combining Moving-Average Convergence and 15-Minute MACD Filters

Summary

This post proposes screening stocks for at least five overlapping moving averages, a circulating share count no greater than 5.5 billion shares, and a 15-minute MACD histogram whose negative bars are shrinking. The author treats moving-average convergence as a sign of price stability and the contracting negative histogram as a possible precursor to a rebound. The share-count condition is presented as a liquidity-related filter, though the post acknowledges that low liquidity can hinder trading.

It suggests adding Bollinger Bands, RSI, trend and rebound checks, and broader market context. The article includes a code example, but it does not demonstrate a tested implementation or provide a backtest, sample, or performance evidence. The code’s MACD and band calculations do not clearly implement the stated shrinking-histogram and moving-average-overlap conditions, so the example should not be treated as a faithful specification. The post also cautions that technical signals can fail when price trends or liquidity change.

Key ideas

• The proposed screen combines five or more overlapping moving averages, a share-count ceiling, and shrinking negative MACD bars on a 15-minute interval.
• The post interprets the MACD condition as a possible rebound signal, not a certainty.
• It suggests additional filters such as Bollinger Bands, RSI, trend checks, and market context.
• The code example does not clearly implement all stated conditions, and no backtest evidence is provided.

Tags

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