Screening Stocks by Trading Range and Large-Order Net Flow

Summary

This short-term stock screen combines three signals: a daily high-low range greater than one percent, a high ranking for large-order net volume, and the product of price change and very-large-order net volume. The stated rationale is to combine price activity with trading-flow and sentiment information, then sort candidates by market capitalization. The document includes indicator formulas and a sample implementation, but offers no historical test, trade examples, or performance evidence.

The author cautions that flow measures can be unstable or affected by market behavior, and that weak sentiment or unusual conditions may lead to large drawdowns. The method leaves out company fundamentals and other market context; suggested additions include technical indicators, valuation measures, and industry information. The sample code contains apparent inconsistencies, so its implementation should be checked independently. No entry timing, exit rule, position sizing, or risk control is specified, limiting what can be inferred about a complete trading strategy.

Key ideas

• The screen requires a daily price range exceeding one percent.
• It ranks stocks using a large-order net-volume measure.
• It combines price change with very-large-order net flow as a further filter.
• The document frames the signals as short-term indicators of activity and sentiment.
• It warns that flow signals may be unreliable and provides no performance validation.

Tags

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