Screening Stocks with Intraday MACD, Amplitude, and Three Limit-Up Days

Summary

The document proposes screening Chinese stocks using three conditions: price amplitude above 1, a shrinking negative MACD histogram on a 15-minute chart, and three consecutive limit-up sessions by the previous day. It interprets amplitude as a way to find volatile stocks, the contracting histogram as a possible sign of changing momentum, and the recent limit-up streak as evidence of strong short-term price action. It also suggests adding indicators such as KDJ or OBV and adjusting the conditions to market circumstances.

The examples include formula snippets and a Python sketch, but they do not establish that the screen is profitable or reliably predicts reversals. The conditions are not fully specified: for example, the amplitude threshold is ambiguous, and the supplied formula examples do not clearly implement the stated three limit-up days or the 15-minute MACD condition. The document warns that volatile stocks carry greater risk and a recent rapid rise may have outrun reasonable valuation. It provides no backtest results or trading rules for entries, exits, or position sizing.

Key ideas

• The proposed screen combines amplitude above 1, a contracting negative 15-minute MACD histogram, and a recent three-session limit-up streak.
• The document treats high amplitude as a sign of greater volatility and recent limit-ups as evidence of strong short-term price action.
• It suggests adding indicators such as KDJ or OBV and adapting the conditions to market circumstances.
• The formula examples are incomplete or ambiguous, and the document gives no performance evidence or trade management rules.
• High volatility and rapid price appreciation may expose traders to larger losses or valuation risk.

Tags

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