Screening Stocks with Intraday MACD Histogram Contraction

Summary

This screening rule combines three conditions: price amplitude above a threshold, a shrinking negative MACD histogram on a 15-minute chart, and exclusion of Beijing-listed shares. The text interprets amplitude as a way to find more volatile stocks and histogram contraction as a possible early sign of a change in direction. It also suggests refining geographic exclusions and adding industry or market-cap filters. Indicator and data-provider examples are included to illustrate how the criteria might be expressed in screening software.

The document supplies no backtest, selected-stock examples, or evidence that the pattern predicts a reversal. Its explanations are hypotheses, and the rule’s usefulness depends on precise definitions of amplitude, MACD histogram, and the relevant bar timing. The sample code checks whether conditions occurred at any point in a data window, which may not match a screen requiring all conditions to hold at the same time. The geographic exclusion is also presented without supporting analysis of policy exposure.

Key ideas

• The screen combines elevated price amplitude, a contracting negative MACD histogram on a 15-minute chart, and a regional exclusion.
• The article treats histogram contraction as a possible sign of a developing price change, rather than demonstrating predictive power.
• Geographic, industry, and market-cap filters may be adjusted to suit the research question.
• The examples do not establish profitability or ensure that all conditions coincide at the screening time.

Tags

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