Intraday MACD Contraction Screen with Price and Amplitude Filters

Summary

The proposed screen looks for stocks with a 15-minute MACD histogram described as shortening, an amplitude above 1%, and a share price below 12. The post interprets the narrowing histogram as a possible reversal signal and the amplitude threshold as a way to focus on active trading. It cautions that low-priced shares can carry risks and that a single short-interval indicator can overlook broader market and company conditions. Suggested additions include other indicators, fundamental information, and testing thresholds against data.

The article includes formula and Python-style examples, but the MACD calculations and histogram direction are not expressed consistently, and the examples do not establish that the intended pattern is correctly detected. No backtest or performance evidence is reported. The rules are therefore best read as an informal screening concept. The intraday timeframe and price and amplitude cutoffs may also behave differently across securities and market regimes, so the post’s suggestion to validate the thresholds is material.

Key ideas

• The screen combines a 15-minute MACD histogram pattern with amplitude above 1% and price below 12.
• The post presents a shortening histogram as a possible reversal signal, not a confirmed forecast.
• It recommends adding other indicators or fundamentals and validating thresholds with data.
• The example calculations appear inconsistent, and no backtest or performance results are provided.

Tags

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