Combining Stock Amplitude, Afternoon Large-Order Flow, and Three Down Days

Summary

This post outlines a Chinese stock screen requiring daily amplitude above one percent, afternoon large-order net inflow, and three consecutive down sessions. It combines a volatility condition, a measure intended to represent trading flow or sentiment, and a short-term bearish price pattern. The article provides formula references and a Python-style example, but does not show a backtest, define the large-order measure in detail, or report evidence that the combined filters predict returns.

The suggested interpretation is that amplitude and afternoon inflows may identify active stocks while three down days identify recent weakness. The author notes that liquidity and market sentiment can affect selections, and that the screen leaves out company financials and past operating results. Adding technical or company-specific performance factors and repeatedly testing adjustments are proposed as improvements. The described signal therefore remains an unvalidated screening idea, with implementation and predictive limitations left unresolved.

Key ideas

• The proposed screen combines amplitude above one percent, afternoon large-order net inflow, and three consecutive declining sessions.
• The author treats the conditions as a blend of volatility, trading-flow, and price-pattern information.
• Formula references and an implementation sketch are included without reported test results.
• Liquidity and sentiment may affect the screen, and company financial measures are omitted.
• The post recommends adding other factors and testing revisions, but does not validate predictive performance.

Tags

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