Screening Stocks with Shortening MACD Histogram Bars, RSI, and Turnover

Summary

This note proposes screening stocks with RSI below 65, turnover between 3% and 12%, and shortening MACD histogram bars on a 15-minute chart. The rationale is to find stocks whose short-term decline may be easing, while using RSI to avoid highly extended readings and turnover to focus on actively traded names. It provides an indicator expression and sample code, although the code does not clearly implement the stated 15-minute interval or turnover-rate range.

No backtest results or performance evidence are presented. The note cautions that combining these filters may produce a small candidate pool and that technical signals omit company finances, industry conditions, and broader market drivers. It suggests combining multiple technical and fundamental measures and defining stop-loss rules. The selection logic should be checked against the intended timeframe and turnover definition before evaluation.

Key ideas

• The proposed screen combines RSI below 65, turnover of 3% to 12%, and shortening MACD histogram bars.
• The intended interpretation is that short-term selling pressure may be easing.
• The sample code does not clearly match the stated intraday timeframe and turnover range.
• The note provides no backtest evidence and warns about a narrow candidate pool and omitted fundamentals.
• It recommends additional indicators, fundamental analysis, and explicit stop-loss rules.

Tags

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