Screening Stocks by Amplitude, Main-Force Activity, and Order Flow

Summary

This stock-selection post proposes screening for shares with price amplitude above one, prior-day evidence of major-player control, an outside-to-inside trading volume ratio above 1.3, and daily volume above three million. It interprets the amplitude as a sign of larger price movement, the control measure as possible institutional involvement, and the order-flow ratio as an indication of buying sentiment. A sample implementation and a platform indicator formula are referenced, though the code mixes platform-specific expressions with Python-like syntax.

The post warns that the criteria may select multiple related stocks from the same industry and that sentiment readings can be wrong. It suggests combining the screen with other technical indicators and applying stricter filters. No historical performance analysis or evidence of predictive value is provided, so the rules should be understood as a proposed heuristic rather than a validated strategy.

Key ideas

• The proposed screen combines price amplitude, a prior-day control signal, order-flow ratio, and trading volume.
• An outside-to-inside volume ratio above 1.3 is used as a sentiment filter.
• The post cautions that correlated stocks may be selected together and sentiment may be misread.
• It offers indicator and code references but provides no backtest evidence for the screen.

Tags

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