Screening Stocks for High Amplitude, Ten-Day Average Proximity, and Institutional Buying

Summary

This stock-screening proposal combines three conditions: price amplitude above a threshold, the opening price near the ten-day moving average, and a signal interpreted as institutional buying. The article describes high amplitude as evidence of short-term movement and proximity to the moving average as a possible sign of a correction or lower price area. Its formula and Python examples operationalize the conditions with a band around the moving average and large-volume and large-ratio measures as proxies for institutional activity.

No backtest, trade history, or performance statistics are presented. The article acknowledges that institutional buying is difficult to identify reliably, that apparent bottoms can remain volatile, and that the screen omits fundamental analysis. It recommends improving the institutional signal, considering company quality and operating conditions, and adding risk controls. These are screening rules and suggested refinements rather than demonstrated evidence that the selected stocks will rebound; the proxies and thresholds may need validation across market conditions.

Key ideas

• The proposed stock screen combines amplitude, opening-price proximity to a ten-day average, and an institutional-buying proxy.
• The examples represent institutional activity through large-volume and large-ratio measures.
• The article provides no performance results to validate the expected rebound behavior.
• The author highlights uncertain institutional signals, volatile bottoms, missing fundamentals, and the need for risk controls.

Tags

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