Screening Stocks by Large-Order Flows and Positive Price Bias

Summary

This stock selection method combines a daily range filter with sustained positive large-order net volume and a positive five-day price bias. Its intended effect is to find shares with active buying and prices above their recent average. The article gives indicator definitions and sample formula logic, including a rolling net-volume measure and the five-day bias calculation. It also shows adding positive earnings per share and return on equity as further filters.

The method is presented as a screening idea, without backtest results or evidence that the conditions predict returns. The authors note that the filters are relatively loose, omit industry and broader financial analysis, and may treat noisy institutional-flow signals as meaningful. Further fundamental checks and more careful weighting of flow data are suggested, but no tested optimization is provided.

Key ideas

• The screen requires a daily amplitude threshold and positive large-order net volume over at least three consecutive days.
• A positive five-day bias is used as a proxy for active institutional interest.
• Positive earnings per share and return on equity are offered as optional additional filters.
• The article provides indicator examples but no performance testing or validation.
• Flow signals and the limited fundamental checks may produce false positives.

Tags

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