Screening Stocks for Range, Institutional Flows, and Recent Gains

Summary

The document proposes a stock screen combining three conditions: price range relative to the open above a stated threshold, positive institutional fund movement, and at least one large daily gain within a recent trading window. It frames range and fund movement as indicators of market activity and participant flows, while the recent gain condition selects stocks with strong short-term price action. Formula and Python examples are included as illustrations of how the conditions might be combined and ranked.

The author warns that selecting for sharp recent gains can favor stocks that are already elevated or have weak long-term fundamentals. The post suggests adding valuation, profitability, and technical measures for broader assessment. Its examples are caveated as needing adjustment, and the document supplies no backtest, return data, or evidence that the screen is profitable. The stated thresholds and sample calculations should therefore be treated as a screening concept rather than a validated strategy.

Key ideas

• The proposed screen combines price range, institutional fund movement, and a recent large daily gain.
• The recent-gain condition emphasizes short-term price strength.
• The author cautions that sharp gains may identify overextended stocks or firms with weak long-term value.
• Valuation, profitability, and technical measures are suggested as additional filters.
• The examples are illustrative and are not accompanied by backtest results.

Tags

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