Screening Stocks by Intraday MACD, Range, and Recent Price Spikes

Summary

This document proposes a stock screen combining a price range condition, a shrinking negative MACD histogram on a 15-minute chart, and at least one daily gain of 10% or more within the recent 25 trading days. It frames the range filter as a way to find active stocks, the MACD condition as a possible sign of a change in direction, and the prior large gain as evidence of strong recent momentum. It includes indicator formulas and a Python example using historical stock data and 15-minute bars.

The article cautions that short-term surges can reflect excessive volatility or event-driven price moves, and that a large range alone says little about long-term investment quality. It suggests adding market capitalization, valuation, financial, or stability measures. The examples do not provide backtest results, and the implementation details and thresholds should be checked carefully before use; the article itself says the screening windows and conditions may need adjustment.

Key ideas

• The proposed screen combines a large price range, a contracting negative 15-minute MACD histogram, and a recent large daily gain.
• The author interprets the filters as signs of volatility, a possible directional shift, and strong recent momentum.
• The document provides indicator formulas and a Python screening example but reports no performance test.
• Short-term price spikes may be driven by unusual volatility or events and may not indicate durable investment quality.
• Fundamental and stability measures are suggested as possible additions to the screen.

Tags

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