Stock Screening with 15-Minute MACD Contraction, RSI, and Range

Summary

This stock-selection rule combines three technical filters: RSI below 65, amplitude above 1, and a shrinking MACD histogram below zero on a 15-minute chart. The document frames RSI and amplitude as ways to find relatively low-priced, volatile stocks, while shorter negative MACD bars are treated as a possible sign that upward momentum is developing. It recommends considering fundamentals, industry prospects, market sentiment, and liquidity alongside the technical conditions before buying.

The article explains the MACD inputs using 12- and 26-period exponential averages and a 9-period average of their difference. It offers no historical performance data, precise definition of amplitude, or complete executable strategy; the Python implementation is explicitly left unfinished. The author warns that technical-only screening can miss company and macroeconomic risks, and that a contracting MACD histogram on a short timeframe may reflect a temporary pause rather than a durable reversal. These conditions therefore describe a screening idea, not evidence of a profitable system.

Key ideas

• The screen combines RSI below 65, amplitude above 1, and a shrinking negative MACD histogram on a 15-minute chart.
• The article interprets the filters as seeking volatile stocks with a possible improvement in short-term price direction.
• It recommends supplementing technical conditions with company fundamentals, industry prospects, sentiment, and liquidity.
• The document supplies no performance evidence and leaves its Python example unfinished.
• A short-timeframe MACD contraction may be temporary and can produce misleading signals.

Tags

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