MACD Trend and 15-Minute Histogram Contraction Stock Screen

Summary

The proposed stock screen combines a MACD condition above the zero line, a rising DEA signal line, and a shrinking green MACD histogram on a 15-minute chart. The article interprets the shorter histogram bars as a possible change in price momentum within a broader positive MACD context. It includes formula references and a sample trading framework that selects candidates, buys a subset, and exits positions after a specified loss relative to cost basis.

The document gives no backtest results or evidence that these conditions predict profitable moves. It notes that adding filters can shrink the candidate pool and that the indicators may give conflicting signals; it suggests testing additional indicators and adapting conditions to market environments. The example code’s filter expressions do not clearly match the prose descriptions of a rising DEA and a contracting green histogram, so the indicator definitions and signs should be validated before relying on the implementation.

Key ideas

• The screen combines MACD above zero with a rising DEA and a shrinking 15-minute green histogram.
• A shrinking histogram is treated as a possible change in price momentum, not a confirmed reversal.
• The sample trading framework includes position limits and a loss-based exit rule.
• The article reports no backtest or performance evidence for the screen.
• The sample code may not encode the stated signal conditions and requires validation.

Tags

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