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Combining Weekly MACD Strength with Short-Term MACD Contraction

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Summary

This document presents a technical stock screen using three conditions: amplitude above 1, a positive weekly MACD histogram, and a shortening negative MACD histogram on a 15-minute interval. The stated interpretation is that the weekly signal indicates broader strength while the shorter interval may show a shift in near-term momentum. It includes formula and Python examples, but the descriptions of amplitude and the MACD conditions differ somewhat between the implementations, so users would need to verify the calculations and time frames.

The post frames the setup as suited to stocks with active short-term moves, while warning that technical signals can be affected by market noise and do not account for company fundamentals or financial condition. It suggests combining the screen with other indicators and fundamental research. The document reports no backtest, performance statistics, or evidence that the signals reliably predict returns; its code is illustrative rather than validation of a trading edge.

Key ideas

  • The screen pairs amplitude above 1 with positive weekly MACD and a contracting negative 15-minute MACD histogram.
  • The weekly and intraday conditions are intended to combine broader trend with a possible short-term momentum shift.
  • The formula and Python examples express some conditions differently and merit verification.
  • The post gives no performance evidence and cautions about noise and omitted fundamentals.

Tags

EquitiesTechnical indicatorsMomentum

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