Screening Stocks with Volatility, MACD Histogram Contraction, and KDJ Crosses

Summary

The proposed stock screen combines three signals: daily price amplitude above a threshold, a shrinking negative MACD histogram on a 15-minute chart, and a newly formed KDJ golden cross. The document interprets the amplitude filter as selecting more volatile stocks, the contracting MACD bars as a possible change in direction, and the KDJ cross as evidence of upward momentum. It recommends combining the signals with volume, turnover, chart patterns, moving averages, and fundamental measures such as business growth and industry prospects.

The note warns that fast markets can produce erratic price moves and that qualifying stocks may only have a brief upswing. It includes indicator formulas and sample Python, but the examples appear inconsistent: the amplitude code uses turnover ratio, and the KDJ calculation uses 30-minute data rather than the stated 15-minute interval. No backtest or performance evidence is provided, so the screen should be treated as a candidate filter, not a demonstrated strategy.

Key ideas

• The screen looks for high-amplitude stocks with a contracting negative MACD histogram and a fresh KDJ bullish cross.
• The signals are framed as volatility, possible directional change, and upward momentum cues.
• The author suggests adding volume, turnover, technical patterns, moving averages, and fundamental filters.
• The document warns that qualifying moves may be brief and volatile.
• The sample implementation has mismatches with the stated conditions 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.