Screening Large-Capitalization Stocks with a Shortening MACD Histogram

Summary

This Chinese equity screen combines three conditions: price amplitude above 1, a shortening negative MACD histogram on a 15-minute chart, and circulating market capitalization above 10 billion yuan. The document describes amplitude as a way to find more volatile shares and the contracting negative histogram as a possible sign of a change in price direction. It presents market capitalization as a size filter and includes indicator-formula and Python examples intended to illustrate how to combine the conditions.

The explanation does not establish that larger capitalization guarantees stronger fundamentals, nor does it report backtest results or predictive performance. It notes that market conditions can change the usefulness of the size filter and recommends considering valuation, profitability, dividends, moving averages, market conditions, and risk tolerance. The sample implementation and formula references should be checked carefully against the intended market data and indicator definitions before use; they are screening examples rather than a validated trading system.

Key ideas

• The screen requires amplitude above 1, a contracting negative MACD histogram on a 15-minute interval, and market capitalization above 10 billion yuan.
• A shortening negative histogram is presented as a possible indication that price direction may change.
• The document proposes combining fundamental measures and moving-average signals with the initial filters.
• Market capitalization and technical signals can behave differently as market conditions change.
• No backtest evidence or demonstrated predictive performance is provided.

Tags

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