Stock Screening with Intraday MACD Contraction and Three Down Days

Summary

This Chinese stock-screening note combines three conditions: amplitude above 1, a shortening negative MACD histogram on a 15-minute chart, and three consecutive declining sessions. It frames amplitude as a volatility filter and the histogram change as a possible sign of shifting momentum. The three-day decline is treated as a potential reversal setup, based on the idea that a short selloff may have incorporated market information.

The document provides example formulas and a Python outline for applying the filters, then suggests adding longer-term trend measures such as moving averages. It offers no backtest, performance figures, or evidence that the conditions predict reversals. Its own caveats include the limited view of short-term indicators, the many influences on share prices, and the risk of losses from poor execution or inadequate risk controls. The examples also use data fields and conditions that may not exactly match the stated amplitude and intraday MACD criteria, so implementation details warrant careful checking.

Key ideas

• The screen combines amplitude above 1, a contracting negative MACD histogram on a 15-minute chart, and three declining sessions.
• The note interprets the filters as a way to find volatile stocks with weakening downside momentum and possible reversal potential.
• It suggests adding longer-term trend indicators to provide broader context.
• The document provides example formulas and code but no performance evidence, and its implementation details may not fully match the stated rules.

Tags

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