Stock Screen Combining Price Amplitude, Institutional Flows, and MACD

Summary

This note outlines a stock-selection rule with three conditions: price amplitude above 1, positive institutional-flow measure, and MACD below zero two trading days earlier. The flow condition is represented in the indicator example as a positive net amount accumulated over five days. Together, these filters combine recent price range, a capital-flow proxy, and a lagged momentum indicator. The document describes selecting candidates, but does not define a complete trading or portfolio-management process.

It includes formula and Python examples, yet provides no backtest, performance evidence, or precise data validation. It acknowledges that the rule focuses on technical and flow measures while leaving company fundamentals out, and cautions against treating MACD as a standalone buy signal. It recommends adapting the screen to the stock type and investment horizon and adding fundamental and other technical checks. The examples use differing data sources and may require correction or clarification before they can be reproduced reliably.

Key ideas

• The screen requires price amplitude above 1 and a positive institutional-flow measure.
• It also checks whether MACD was below zero two trading days earlier.
• The example accumulates positive net flow over five days.
• The note says the technical and flow filters omit fundamentals and do not establish expected returns.

Tags

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