Screening for Shrinking 15-Minute MACD Histograms and High Amplitude

Summary

This stock-selection proposal combines three conditions: amplitude above one, a shrinking negative MACD histogram on a 15-minute interval, and no limit-up close on the prior day. The intended interpretation is that larger movement creates a more active candidate, a contracting negative histogram may signal a possible change in direction, and avoiding prior limit-up stocks may identify shares with room to rebound. The document includes indicator formulas and a sample data-processing workflow for filtering candidates.

The article offers a rationale but no backtest, trade rules, or performance evidence showing that these conditions predict rebounds. Its explanation of prior limit-up status as a gap between price and expectations is not supported with analysis, and the sample code and field mappings are illustrative. It acknowledges that the screen can miss undervalued or promising stocks and suggests combining technical signals with fundamentals, industry context, and macro conditions. Any use would require validating the definitions, data alignment, and signal behavior before drawing conclusions.

Key ideas

• The proposed screen combines amplitude above one, a contracting negative 15-minute MACD histogram, and no prior-day limit-up close.
• The histogram condition is intended to flag possible momentum improvement while it remains negative.
• The article gives indicator formulas and sample code but provides no test of returns or predictive accuracy.
• It recommends adding fundamental, industry, and macroeconomic context.
• The sample data fields and formulas would need validation before practical use.

Tags

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