Stock Screening with Amplitude, Positive Institutional Flows, and Rising Lows

Summary

This stock selection method combines three conditions: price amplitude above the stated threshold, positive institutional fund flows, and evidence that the price bottom is rising. The example indicator calculation sums net fund amounts over a recent period and compares a lagged close with the lowest low in a rolling window. A Python sketch applies corresponding filters and sorts the selected stocks by turnover ratio.

The document presents the criteria as a way to find stocks with upward price structure and institutional buying. It offers no performance data or backtest results, and its code is illustrative rather than a validated implementation. The author notes that the screen may miss promising stocks undergoing short-term pullbacks and that rising bottoms can be affected by macroeconomic or policy developments. Suggested refinements include adding financial and fundamental data and using other technical indicators to assess the trend.

Key ideas

• The screen requires amplitude above its threshold, positive institutional net flows, and a rising-bottom condition.
• The example measures fund flows over a recent multi-day window.
• A rolling low and lagged closing price are used to represent a rising bottom.
• The author cautions that short-term pullbacks and external economic or policy factors can limit the screen.
• Fundamental information and additional indicators are suggested as possible refinements.

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