Intraday MACD Contraction and Moving-Average Clustering for Stock Screening

Summary

This screening idea combines three conditions: price amplitude above 1, a shortening negative MACD histogram on a 15-minute chart, and at least five moving averages converging or crossing. The article interprets the shrinking histogram as a possible change in momentum and clustered averages as potential price support. It proposes combining these signals to find volatile shares that may be near a shift in direction.

The document gives indicator-formula and Python examples, but no backtest results or evidence that the setup predicts profitable trades. Its implementation details do not fully match the verbal rules: the moving-average condition checks whether the five-period average is above several longer averages, rather than measuring a clear degree of convergence, and the examples mix daily and 15-minute data. The author notes that moving-average choices affect results and that relying on convergence alone can omit other relevant information. Volume, turnover, and additional indicators are suggested as possible supplementary filters.

Key ideas

• The proposed screen pairs amplitude above 1 with a contracting negative MACD histogram on 15-minute bars.
• It also seeks convergence or crossover among at least five moving averages as a possible support signal.
• The document offers code examples but no empirical results or profitability evidence.
• Its examples may not accurately implement the stated convergence condition and mix time frames.
• The author recommends checking additional indicators and market-specific volume or turnover conditions.

Tags

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