Selecting Metaverse Stocks with a Five-Day Average and Order-Flow Ratio

Summary

The proposed Chinese stock screen narrows its universe to companies classified in the metaverse sector. It then selects stocks whose close is above the five-day moving average and whose estimated outside-volume to inside-volume ratio exceeds 1.3. The article describes outside volume as trading volume on sessions where the close is at or above the open, and inside volume as volume where the close is below the open. It provides formula and code examples for expressing the conditions, including a Python outline that sources market and money-flow data.

The rationale is that price above its short moving average suggests recent strength and a higher outside-volume ratio suggests buying support. The article acknowledges that these simple conditions can miss relevant factors and be affected by market or policy changes. It suggests adding technical, financial, sentiment, liquidity, and market-cap filters. No historical test, portfolio rules, execution assumptions, or evidence that the screen predicts returns is supplied. The listed formula also compares the close with the moving average using a crossing function, which may select crossing events rather than every stock remaining above the average.

Key ideas

• The screen restricts candidates to the metaverse sector and applies price and volume-balance conditions.
• A closing price above the five-day moving average is used as a recent-strength filter.
• The outside-to-inside volume ratio threshold is intended to indicate buying pressure.
• The article offers formula and Python examples but no backtest or predictive evidence.
• It notes the simplicity of the filters and suggests adding financial, technical, liquidity, or sentiment measures.

Tags

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