Screening Stocks with Shortening 15-Minute MACD Histogram Bars

Summary

This note outlines an equity screen requiring RSI below 65, exclusion of a designated Chinese market board, and a 15-minute MACD histogram condition intended to identify shrinking negative momentum. The rationale is that shortening negative bars may indicate that downward momentum is easing. It provides indicator formulas and a Python example, but the examples are not perfectly aligned: the code's market exclusion uses a stock-code prefix, and its MACD checks do not clearly implement the stated 15-minute interval.

The author cautions that the approach depends heavily on technical indicators and may overlook fundamental factors. The note suggests adding other technical measures and fundamental information for broader evaluation. It offers no backtest, trade outcomes, or other evidence that the screen predicts reversals. The stated signal should therefore be understood as a candidate filter whose definition and practical performance need further validation, rather than a demonstrated trading edge.

Key ideas

• The screen combines RSI below 65, a market-board exclusion, and a MACD histogram signal.
• The intended signal is a negative MACD histogram whose bars are becoming shorter.
• The accompanying Python example may not faithfully encode the stated 15-minute interval or market exclusion.
• The note warns that technical-only selection can miss fundamental information and provides no performance evidence.

Tags

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