Combining Price Amplitude, Moving-Average Crossovers, and Persistent Net Flow

Summary

This Chinese equity screening proposal combines price amplitude above 1, simultaneous upward crosses among three moving averages, and large-order net flow above 0.05 for at least three consecutive days. It treats persistent positive flow as a sign of investor interest and uses moving-average alignment and a price-above-short-average condition in the sample implementation. The article suggests checking candidates alongside valuation, industry conditions, and company fundamentals.

The text cautions that positive flow does not ensure future gains and recommends considering market conditions and risk-return expectations. Its descriptions and example are not fully consistent: it refers to three simultaneous golden crosses, but the code uses ordered moving averages and also applies an extra price-above-five-day-average filter. The article offers no backtest, definition validation, or outcome data, so its proposed signal should be treated as a screening idea rather than an established strategy.

Key ideas

• The proposed screen combines amplitude above 1 with three upward moving-average crosses.
• It requires large-order net flow above 0.05 for three or more consecutive days.
• The sample adds a price-above-five-day-average condition to the selection logic.
• The article recommends considering fundamentals, valuation, industry conditions, and market context.
• It warns that positive flow is not a guarantee of rising prices and supplies no performance evidence.

Tags

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