Screening Stocks by Price Range, Large-Order Flow, and Rising DEA

Summary

This stock-screening proposal combines a price-amplitude threshold, large-order net-volume readings above a stated level for at least three consecutive days, and a rising DEA line. The intended interpretation is that persistent large-order activity may reflect buying interest, while a rising DEA is used as a trend filter. The article supplies indicator expressions and a stock-selection outline, but it does not report a backtest, measured returns, or a comparison with a benchmark.

The suggested holding horizon is short term, and the author cautions that technical and order-flow signals can misread market conditions. A rising DEA alone may not confirm the broader trend, so the article suggests considering other indicators and company fundamentals. There is also a notable specification issue: the formulas apply an absolute value to large-order net volume, which treats large negative readings as qualifying alongside positive ones, despite the prose describing net buying. The sample Python is presented as a reference and appears incomplete, so its implementation should not be assumed to match the stated screen exactly.

Key ideas

• The screen combines daily amplitude, three consecutive large-order net-volume readings, and a rising DEA line.
• The article interprets the flow condition as evidence of possible sustained buying interest.
• It presents indicator formulas but offers no backtest results or performance evidence.
• The absolute-value formula admits negative readings even though the prose emphasizes buying pressure.
• The author suggests adding fundamental and other technical measures, while warning that the signals can fail.

Tags

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