Screening Stocks with Intraday MACD, Amplitude, and Concentration

Summary

The document describes a stock screen combining price amplitude, a market-concentration measure, and a 15-minute MACD histogram that is getting shorter. It interprets high amplitude as a way to find actively moving stocks, the concentration filter as a way to limit the universe, and a shortening negative MACD histogram as a possible sign that downward momentum is easing. It also provides illustrative screening logic and Python-style pseudocode, alongside a proposed expanded version that adds longer-term company and sector information, other technical measures, and holding-period and risk controls.

The material is a conceptual template rather than a validated strategy. It gives no backtest or live-trading evidence. The document itself notes that technical indicators can lag or mislead, and that focusing on price and concentration may overlook fundamentals or create concentrated risk. Its example conditions and code should be checked for data definitions and implementation consistency before use.

Key ideas

• The screen combines price amplitude, a concentration measure, and a 15-minute MACD histogram contraction.
• A shortening negative histogram is treated as a possible sign of weakening downside momentum.
• The proposed refinements add company fundamentals, sector context, multiple indicators, and risk controls.
• The document offers example logic but no evidence of backtested or live performance.
• Indicator lag, missed fundamentals, and concentrated holdings are identified as risks.

Tags

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