Intraday MACD Histogram Contraction and Ten-Day Moving Average Screen
Summary
This proposed stock screen combines three conditions: daily amplitude greater than 1, a shrinking negative MACD histogram on a 15-minute chart, and price near the ten-day moving average. The rationale is to find volatile stocks where downside momentum may be easing while the broader short-term trend remains favorable. The article includes formula and Python examples for amplitude, MACD histogram change, and a moving-average comparison.
The examples do not fully match the stated rules: the code uses turnover ratio as an amplitude proxy, checks closing price above the moving average rather than whether the open is near it, and does not clearly establish a per-stock 15-minute signal. No backtest or performance evidence is offered. The post warns that qualifying stocks can still fall or show only temporary trends, and suggests adding volume, turnover, company growth, or other technical measures. These criteria are an illustrative screening idea, not a validated trading system.
Key ideas
- The proposed screen combines amplitude, a contracting negative 15-minute MACD histogram, and a ten-day moving-average condition.\nA contracting negative histogram is presented as a possible sign that the price move may be changing.\nThe code uses proxies and conditions that differ from parts of the written rule.\nThe article provides no backtest and cautions that short-lived trends and market volatility can undermine the screen.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.