Screening for Active, Gapping Stocks with a Weakening MACD Histogram

Summary

The proposed stock screen combines four conditions: daily amplitude above a threshold, a shortening negative MACD histogram on a 15-minute interval, current trading volume above a stated level, and an opening price above the prior high. The document interprets amplitude as a way to find volatile stocks, a shrinking negative histogram as a possible change in direction, trading volume as a measure of activity, and a gap higher as a sign of market interest. It suggests adding valuation, profitability, revenue growth, sector attention, and broader market context before making a decision.

The document gives sample screening formulas and Python-style steps, but it presents no tested results or evidence that the conditions predict returns. It also notes that a high open does not ensure follow-through and that a fixed volume threshold may exclude less liquid or lower-float stocks. The examples have potential implementation ambiguities: the amplitude threshold is not clearly tied to a percentage, the code's turnover-ratio field may not match the stated price-range condition, and the stock-data workflow does not clearly apply the 15-minute MACD signal separately to each candidate. These details need validation before use.

Key ideas

• The screen combines price amplitude, a contracting negative 15-minute MACD histogram, trading volume, and a gap above the prior high.
• The author treats these conditions as activity and possible momentum-shift filters.
• The document recommends adding fundamental, industry, and broader market context.
• A high opening price and elevated volume do not guarantee continued gains.
• The example code and thresholds require validation for consistency and data alignment.

Tags

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