Screening Stocks with Weekly MACD and Large-Order Net Flow

Summary

The document describes a stock-selection screen using daily price range above one percent, weekly MACD above its signal line and above zero, and a top-ten ranking for large-order net flow. It gives formula-style conditions and a Python outline that estimates net flow from buy and sell volumes, then selects stocks meeting the stated filters. The proposed rationale is that strong large-order net flow may indicate investor interest.

The article cautions that the approach relies on technical measures and flow data while omitting company fundamentals and broader market conditions, which can leave selections exposed to volatility or adverse news. It recommends adding financial, industry, and market information. No backtest results or evidence of predictive performance are included. The code outline also does not clearly implement all stated conditions: for example, its MACD expression does not visibly establish the weekly timeframe or the full zero-axis test, and the ranking operation is not explained. These details require validation before use.

Key ideas

• The proposed screen combines daily range, weekly MACD conditions, and a top-ten large-order net-flow ranking.
• The article treats elevated net flow as a possible sign of investor interest.
• It cautions that the screen omits fundamentals and broader market conditions.
• The examples offer no performance evidence and may not implement every stated condition consistently.
• The author suggests adding market, company, and industry data.

Tags

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