Screening for Volatile Stocks with Limit-Up History and a Shortening MACD Histogram

Summary

This post proposes screening stocks for a large daily range, at least two limit-up events within a rolling 500-day window, and a shortening 15-minute MACD histogram. The logic combines volatility and past price surges with a short-term momentum indicator, which the author frames as a way to assess market sentiment. The document includes formula and Python examples, though the code’s described calculations do not consistently match the stated 15-minute and range conditions.

The author cautions that the method focuses heavily on technical signals, omits fundamentals and policy factors, and may react to noise in a short time frame. Suggested improvements include adding broader market and company analysis, other indicators, or multiple timeframes. The post supplies no backtest or performance evidence, so the screen is an initial filter rather than evidence of an investable edge.

Key ideas

• The proposed screen combines daily range, limit-up history over 500 days, and a shortening 15-minute MACD histogram.
• The author interprets limit-up history as evidence of past market attention and MACD change as a short-term sentiment signal.
• Short-horizon MACD readings may be noisy, and technical-only selection omits fundamental and policy context.
• The post suggests adding other indicators and multiple timeframes, but provides no performance validation.

Tags

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