Equity Screening with Amplitude, Shortening MACD Bars, and Institutional Buying

Summary

This proposed Chinese equity screen combines three conditions: price amplitude above a stated threshold, a shortening negative MACD histogram on a 15-minute chart, and evidence interpreted as institutional buying. The rationale is that elevated amplitude identifies more volatile stocks, shrinking negative MACD bars may signal a possible change in price direction, and substantial institutional purchases may suggest demand near lower prices. The document also provides indicator and data-processing examples intended to implement the screen.

The author acknowledges that the approach depends on identifying market themes and anticipating institutional activity. The institutional-buying filter may be restrictive, leaving few candidates, and the strategy may miss other attractive stocks. Suggested refinements include considering leading and growth stocks and using historical data and capital-flow information to tune the conditions. No backtest, measured accuracy, or returns are reported, so the stated potential benefits remain hypotheses. The implementation details also do not establish that the data fields or institutional-flow measure reliably represent the intended signals.

Key ideas

• The screen requires amplitude above a threshold, a shortening negative MACD histogram on a 15-minute chart, and institutional buying evidence.
• The rationale links amplitude to volatility and a shrinking negative histogram to a possible shift in momentum.
• The institutional-buying condition is intended to identify strong buying at lower prices.
• The method may produce few candidates and depends on anticipating market themes and institutional flows.
• The document offers possible refinements but provides no backtest or performance evidence.

Tags

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