Intraday Stock Screen Using Range, MACD Contraction, and Daily Drawdown

Summary

This stock screen combines a range condition, a 15-minute MACD histogram that remains negative while shortening, and a daily low within a specified loss band of roughly four to five percent from the prior close. The article interprets the contracting negative histogram as a possible shift in price direction and uses the drawdown band to focus on sharply weakened shares. It also includes sample indicator formulas and a Python illustration, though the implementation has potential mismatches: the amplitude filter is applied to turnover ratio, and the displayed daily change calculation does not clearly use the low price as described.

No historical test, trade rules, or return and risk measurements are provided. The post itself warns that high-range shares may include risky small-cap companies and that the screen can miss fundamentally sound stocks under temporary pressure. It recommends adding fundamental, industry, and macroeconomic analysis, and mentions machine learning as a possible research extension. These are suggestions rather than validated improvements; the criteria alone do not establish that a rebound will follow or define when to enter or exit a trade.

Key ideas

• The screen combines a range threshold with a contracting negative MACD histogram on a 15-minute chart.
• It selects stocks whose daily low falls within a stated loss band relative to the previous close.
• The article provides formula and Python examples, but their variable choices may not match the prose conditions.
• It offers no backtest or evidence that the filters produce profitable trades.
• The post flags small-cap exposure and recommends considering fundamental and market context.

Tags

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