Screening Stocks with Range, Shortening MACD Bars, and Rounded Reversals

Summary

This stock screen combines a daily range threshold above 1, a shortening negative MACD histogram on a 15-minute chart, and a rounded price pattern. The document presents the range as a way to find more volatile shares, the MACD change as a possible sign of an impending shift, and the rounded shape as a potential reversal pattern. It gives illustrative indicator formulas and a Python outline that approximates the rounded shape by fitting a curve to closing prices. The pattern itself is not defined precisely, so the proposed curve fit is only a rough proxy.

The screen is framed as a way to find volatile stocks that may be reversing, not as a tested trading system. The text cautions that reversals may not form a rounded shape, signals can fail, and small-cap, high-range shares may carry extra risk. It suggests adding fundamental and technical filters and considering cumulative returns over longer periods to reduce sensitivity to short-term moves. No performance evidence or validation is provided.

Key ideas

• The screen combines range above 1, a shortening negative MACD histogram on a 15-minute chart, and a rounded price pattern.
• The document treats each condition as a possible clue to volatility or reversal, not a guarantee.
• A curve fitted to closing prices is offered as an approximate way to identify a rounded shape.
• The pattern definition is imprecise, and the proposed screen has no reported performance validation.
• The text recommends considering fundamental filters and risk controls, especially for small-cap stocks.

Tags

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