Stock Screening with Intraday MACD Contraction and Price Filters
Summary
This proposed screen selects stocks using three conditions: a price range greater than one, a 15-minute MACD histogram that is shrinking while negative, and a share price of 18.5. The article interprets the range as a sign of volatility and the histogram contraction as a possible short-term change in momentum. It presents indicator and Python examples, then suggests replacing the exact price cutoff with a more considered assessment of valuation and company fundamentals.
No backtest, sample, or performance results are provided. The fixed share price is not a reliable measure of company size or undervaluation, and the article itself notes that this filter can overlook financial quality and valuation. It also flags the narrow technical focus and recommends considering broader market risk, fundamental measures, and sector conditions. The proposal should therefore be read as an illustrative screen rather than a validated strategy.
Key ideas
- The screen combines a price-range threshold, a negative but contracting 15-minute MACD histogram, and an exact share price.
- The histogram condition is intended to identify possible short-term momentum change.
- A fixed share price alone does not establish low valuation or small company size.
- The article provides no backtest or evidence of profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.