Screening Stocks with Range, MACD Histogram Contraction, and Low KDJ

Summary

This stock screen combines a price-range filter with two momentum conditions. It looks for a range above 1%, a contracting negative MACD histogram on a 15-minute chart, and a KDJ value below 20. The document interprets the shrinking negative histogram as a possible change in momentum and the low KDJ reading as a sign that price is relatively depressed. It includes formula and sample-code references, but does not report any backtest or measured results.

The screen is intended to locate volatile stocks that may be turning upward from low levels. A low oscillator reading does not establish that a stock is fundamentally undervalued, and price can remain weak or move sideways for an extended period. The described conditions also leave details open, including how long the low reading must persist and how the signals should be combined in time. The source recommends adapting parameters to market and industry conditions and consulting financial data to reduce the chance of selecting a value trap.

Key ideas

• The screen combines a range above 1%, a contracting negative MACD histogram, and KDJ below 20.
• The MACD and KDJ conditions are intended to identify weakening downside momentum at a relatively low price level.
• A low oscillator reading does not demonstrate fundamental undervaluation or guarantee a rebound.
• The document provides example formulas but no performance evidence or complete timing rules.
• Market, industry, and financial context may be needed when applying the screen.

Tags

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