Screening Metaverse Stocks with a Volume-Ratio Filter

Summary

This document outlines a Chinese equity screen for companies classified in the metaverse industry, with a purported rounded-bottom chart pattern and a volume ratio between 1.5 and 6. The volume ratio is described as current volume relative to average volume, used as a rough gauge of trading activity. The article notes that the industry classification must come from an external data source or be defined by the user, and that the rounded-bottom pattern has no standard formula in the example.

The sample Python logic calculates a rolling 20-period volume ratio and uses a custom range calculation as a stand-in for the chart pattern. That calculation does not itself establish a rounded bottom, so the implementation is only a rough placeholder. The article recommends adding moving averages, momentum or other technical measures, along with revenue, profitability, and leverage data. It provides no backtest or performance evidence, and warns that a volume-only filter can misclassify stocks in unusually active or quiet markets.

Key ideas

• The proposed screen combines metaverse industry membership, a rounded-bottom pattern, and a bounded volume ratio.
• Industry classification requires an external source or a user-defined universe.
• The sample range calculation is not a validated rounded-bottom detector.
• The document recommends adding technical and fundamental filters, but gives no performance evidence.

Tags

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