Screening Stocks by Volatility, Afternoon Flows, and a Weekly Moving Average Cross

Summary

The document outlines a stock selection screen combining three conditions: daily price amplitude above a threshold, afternoon large-order net inflow, and a weekly close crossing above a 30-week moving average. It then says to select the strongest-gaining candidates. The proposed signals mix a volatility measure, a money-flow proxy, and a trend indicator.

The article provides formula examples and a Python sketch, but the implementation has apparent inconsistencies: the weekly crossover formula uses a 30-period moving average without clearly specifying weekly data, and the sample ranking logic does not actually rank candidates by their gains. No backtest results or risk-adjusted evidence are presented. The author notes that the approach focuses on short-term price movement and flows, omits company fundamentals, and may need practical adjustment; valuation measures are suggested as possible additions.

Key ideas

• The screen combines price amplitude, afternoon large-order flow, and a weekly moving-average crossover.
• The method proposes choosing the strongest-performing stocks among those that pass its filters.
• The article provides formula references and a code sketch, but the ranking logic does not clearly implement the stated gain-based selection.
• The author cautions that the screen omits fundamentals and needs further evaluation and adjustment.

Tags

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