Stock Screen Combining Daily Range, Two-Day Highs, and Institutional Activity

Summary

This stock-selection idea combines a daily price range greater than 1%, a high equal to the highest level across the current and prior day, and relatively large institutional trading activity. It uses price movement and institutional flows as screening inputs, with the intention of finding stocks attracting sizable institutional interest while reaching a short-term high. The document also suggests adding moving-average and relative-strength checks, then filtering candidates by measures of institutional buying, credibility, and holdings.

The strategy is presented as a screening concept, not as a tested trading system. It offers no backtest, defined holding period, entry or exit rules, or evidence of returns. The institutional-activity proxy is not clearly specified, and the sample code’s proxy does not establish actual institutional buying. The article warns that observed activity may reflect passive holdings or misleading signals, and that market sentiment and other conditions can affect results. It recommends further fundamental and technical review, but does not define validated thresholds for those additional filters.

Key ideas

• The screen looks for a daily range above 1%, a two-day high, and relatively high institutional activity.
• Moving averages and relative strength are suggested as additional technical filters.
• Fundamental and industry checks are proposed as a second-stage review of screened stocks.
• Institutional activity may be misleading or passive and should not be treated as proof of informed buying.
• The document provides no performance evidence or complete entry, exit, and holding rules.

Tags

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