Small-Cap Stock Screen Using Amplitude and Shortening MACD Bars
Summary
The proposed Chinese equity screen selects stocks with amplitude above 1, a shortening negative MACD histogram on a 15-minute timeframe, and circulating share capital no greater than 5.5 billion shares. The document interprets high amplitude as a sign of larger price movement and a contracting negative histogram as a possible shift in price direction. It supplies indicator-formula and Python examples, then recommends combining the screen with valuation, dividend, growth, chart-pattern, or moving-average measures.
No backtest or performance evidence is provided, and the suggested possibility of undervaluation is not established by the filters. The text notes that smaller companies and highly volatile stocks may carry greater risk, including concerns about newer listings or weak business results. The indicator code and data fields also need checking: the examples use different meanings for the amplitude condition, and a shortening negative histogram alone does not establish a reversal. The rules should be defined consistently and evaluated on appropriate historical data before use.
Key ideas
- The screen combines amplitude above 1, a contracting negative MACD histogram on 15-minute data, and a share-count ceiling.
- The document suggests adding fundamental and technical filters to the initial screen.
- It provides sample formulas and code but no evidence of predictive performance.
- Small, volatile stocks may be risky, and the indicator definitions should be verified for consistency.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.