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Stock Screening with Amplitude, Shortening MACD Bars, and Volume Ratio

Article SuperMind
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Summary

This Chinese stock-screening post proposes combining amplitude above 1, a shortening negative MACD histogram on a 15-minute chart, and a volume ratio between 1.5 and 6. The rationale is to find volatile shares with active trading while a bearish MACD histogram contracts, which the post interprets as a possible change in direction. It suggests supplementing the technical filters with valuation, dividend, chart-pattern, or moving-average measures.

The post offers indicator formulas and sample Python code, but no backtest, performance results, or evidence that the combination predicts profitable trades. The sample implementation also appears internally inconsistent: its volume checks compare current volume with prior volume using opposing thresholds, and the listed amplitude calculation does not clearly match the stated condition. The author notes that unusual large trades can distort volume ratio and that high-amplitude, small-cap stocks may carry elevated risk. The rule is therefore a screening idea requiring careful implementation and empirical validation.

Key ideas

  • The proposed screen combines amplitude, a contracting negative MACD histogram, and a bounded volume-ratio condition.
  • The MACD signal is intended to flag a possible change in price direction.
  • Large trades may distort volume readings, and volatile small-cap stocks may carry greater risk.
  • The example code contains apparent inconsistencies between the stated filters and its calculations.
  • The post presents no evidence from backtesting or live performance.

Tags

EquitiesChina marketsTechnical indicatorsMomentumVolatility

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