Stock Screening with MACD, Bid–Ask Volume, and Shortening 15-Minute Bars

Summary

This stock-screening proposal combines three conditions: MACD above zero, bid volume greater than ask volume, and a shortening MACD histogram on a 15-minute chart. It presents the setup as a way to identify stocks with positive momentum and improving short-term conditions. The accompanying example code scans listed stocks, checks the indicator and top-of-book volumes, then selects candidates based on recent versus longer-window histogram readings. It also sketches allocating cash across selected names.

The document flags MACD’s lag, reliance on a single intraday timeframe, limited accuracy from a small set of indicators, and sensitivity to unexpected events. It suggests adding indicators, weighting signals, considering more market data, and using risk controls and diversification. However, it provides no backtest results, and the code’s histogram comparison does not clearly establish that green bars are shortening. The proposed allocation and execution logic also lack a complete risk framework, so the rules need precise definitions and testing before use.

Key ideas

• The screen requires MACD above zero and greater bid than ask volume.
• It also looks for a shortening MACD histogram on a 15-minute timeframe.
• The example code compares recent and longer-window histogram averages to select candidates.
• The document identifies indicator lag, timeframe dependence, and sudden events as risks.
• No performance evidence is provided, and the example does not fully define risk controls.

Tags

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