Screening Stocks with RSI and Shortening 15-Minute MACD Bars

Summary

This article describes a stock-selection screen that combines a favorable company profile with RSI below 65 and shrinking negative MACD histogram bars on a 15-minute chart. The proposed interpretation is that contracting negative bars may signal a short-term reversal and a possible buying opportunity. It also outlines filtering examples, including excluding special-treatment shares and using a business-income concentration threshold as a proxy for company quality.

The post warns that a short-term screen can miss stocks that do not meet its conditions despite having longer-term potential. It suggests adding factors such as turnover or using machine-learning methods, but provides no evaluation of those ideas. Its sample indicator conditions appear inconsistent: the formula also requires a MACD crossover above its signal line, which is not necessarily the same as bars merely becoming shorter. The code is illustrative, and the post reports no backtest, performance evidence, or detailed definition of a good company profile.

Key ideas

• The screen combines RSI below 65, a favorable company profile, and shortening negative MACD bars on a 15-minute chart.
• The author interprets shrinking negative MACD bars as a possible short-term reversal signal.
• A business-income concentration threshold is offered as one possible proxy for company quality.
• The post notes that a short-term screen may exclude stocks with longer-term investment potential.
• The sample formula requires a MACD crossover, so its implementation may differ from the stated shrinking-bar condition.

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