A Stock Screen Combining Daily Range, Reversal Patterns, and Institutional Flow

Summary

The document describes a stock-selection screen that combines three conditions: daily high-low amplitude above one percent, a reversal or engulfing-style price pattern, and a positive measure labeled institutional trend. It sketches implementations in Chinese trading platforms and Python, then suggests adding fundamental assessment and using multiple institutional-flow measures to reduce reliance on short-term price behavior or uncertain flow data.

The examples do not establish that the screen predicts returns or produces profitable trades. The supplied Python description defines the so-called institutional trend using the change in closing price, so it does not clearly measure institutional activity; the reversal indicator and accompanying platform formulas also appear inconsistent in places. The strategy should therefore be treated as an informal screening idea whose conditions and data definitions need validation before use. No performance evidence or risk-adjusted backtest is provided.

Key ideas

• The screen requires daily high-low amplitude above one percent, a reversal pattern, and a positive institutional-trend condition.
• The document presents both platform formula examples and a Python-style implementation.
• It warns that short-term price rules can miss companies with longer-term value and that institutional data may be uncertain.
• The examples do not provide return tests, and the institutional-trend calculation is not clearly tied to institutional flows.

Tags

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