Screening Small-Float Stocks with Range and 15-Minute MACD

Summary

This stock-selection rule combines three conditions: daily price amplitude above a threshold, circulating shares at or below a stated limit, and a shortening negative MACD histogram on a 15-minute interval. The proposed interpretation is that a wide range identifies active price movement, a smaller share float defines a smaller-capitalization universe, and a contracting negative histogram may indicate weakening downward momentum.

The note cautions that MACD can change frequently, that technical signals omit fundamental and broader market context, and that a short-term screen may have unreliable follow-through or drawdowns. It recommends considering volume and valuation measures, limiting drawdowns and trading frequency, and checking candidates’ broader price behavior. Example formula and Python snippets are supplied, but there is no backtest, return evidence, or explanation of execution rules. The described conditions are thus a screening hypothesis rather than a demonstrated strategy.

Key ideas

• The screen combines price amplitude, a circulating-share limit, and a 15-minute MACD histogram condition.
• A shrinking negative histogram is interpreted as potentially weakening bearish momentum.
• The proposed screen focuses on volatile stocks with a limited share float.
• MACD signals can reverse quickly and do not account for fundamentals or market conditions.
• The note suggests adding other measures and managing drawdowns and trading frequency, but reports no test results.

Tags

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