Stock Screen Using Range, Large-Order Net Flow, and Stochastic K

Summary

This stock-selection rule screens for amplitude above 1, large-order net volume above 0.05 for at least three consecutive days, and a stochastic K value below 20. The article frames the range and net-flow measures as signals related to market sentiment and capital flows, while the low K threshold adds a short-term technical filter. It also includes a Python example that computes a rolling three-day net-volume sum and stochastic values before filtering records.

The author acknowledges that the rule relies heavily on technical indicators and market sentiment, with little attention to fundamentals or longer-term industry prospects. The article suggests adding indicators, valuation measures, and price-volume analysis, but reports no backtest results or evidence of profitability. Its sample code’s amplitude calculation and filtering expression may not implement the stated amplitude threshold as described, and the rolling sum is not by itself proof that each of three individual days meets the threshold. These details limit confidence in reproducing the stated screen directly.

Key ideas

• The screen combines amplitude above 1, three-day large-order net volume above 0.05, and stochastic K below 20.
• The article presents range and net volume as rough measures of market sentiment and capital flows.
• A Python example computes a rolling net-volume sum and stochastic K values for filtering stocks.
• The author notes that the screen gives limited weight to fundamentals and long-term industry prospects.
• No performance evidence is provided, and the sample calculations may not match the described conditions precisely.

Tags

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