Screening Stocks for Large-Order Buying and a Sharp Intraday Decline

Summary

This stock selection proposal combines three conditions: daily amplitude above a threshold, large-order net volume remaining positive over several sessions, and an intraday low falling within a narrow band of declines relative to the previous close. The accompanying explanation frames amplitude and large-order flow as technical inputs, while the decline condition captures recent market action. The sample also adds positive earnings per share and a return-on-equity filter as possible fundamentals.

The post gives no backtest, trade rules, portfolio construction method, or evidence that these signals have predictive value. It cautions that short-term price changes may not reflect a company’s overall prospects and can be affected by adverse news or changing market conditions. Its sample code uses rolling volume calculations and price comparisons, but the amplitude condition and stated criteria are not clearly aligned, so the implementation should be checked against the intended definitions. Additional volume and turnover measures are suggested as possible refinements, not demonstrated improvements.

Key ideas

• The proposed screen combines daily amplitude, persistent positive large-order net volume, and a restricted intraday decline.
• The code example also applies earnings and return-on-equity filters.
• The post warns that short-term price action may fail to reflect company fundamentals or new risks.
• No testing or performance evidence is supplied to validate the selection rules.
• The code’s amplitude calculation and filtering conditions need review before practical use.

Tags

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