Intraday Stock Screen Using MACD, Volatility, and a Morning Star Pattern

Summary

This proposed stock screen combines three conditions: amplitude above a threshold, a shrinking negative MACD histogram on a 15-minute chart, and a morning-star candlestick pattern. The document treats the amplitude filter as a way to find volatile stocks, the MACD change as a possible shift in momentum, and the candlestick pattern as a potential short-term rebound signal. It then recommends considering fundamental measures, sector activity, policy developments, and broader market sentiment alongside the technical setup.

The source includes example formulas and sample code, but does not provide backtest results or evidence that the combined signals predict profitable trades. It warns that a narrow technical screen can miss fundamentals and liquidity, and that a short-term reversal pattern needs longer-term trend context. The examples also leave details of the screen’s implementation unclear, so the conditions would need careful definition and validation before use.

Key ideas

• The screen combines an amplitude filter, a contracting negative MACD histogram, and a morning-star pattern.
• The pattern is framed as a possible short-term rebound signal that needs longer-term trend context.
• The author recommends considering fundamentals, sector conditions, policy developments, and market sentiment.
• Liquidity and other important factors may be missed by a screen based on a few technical conditions.
• The document provides no backtest or performance evidence for the proposed combination.

Tags

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