Stock Screening with Amplitude, Rounded Price Shape, and Institutional Flow

Summary

The post describes a stock screening rule combining amplitude greater than one, a rounded price pattern, and positive institutional movement. It presents these conditions as a way to find stocks with meaningful activity, smoother price behavior, and apparent institutional buying. A reference formula uses a one percent close-to-prior-close rise, a price position near the lower end of a 50-period range, and a positive DDX reading. The post does not provide a Python implementation or empirical performance evidence.

The author cautions that amplitude and shape judgments can be subjective, selected stocks may have weak fundamentals, and institutional flow data may lag. Suggested refinements include adding indicators such as RSI or MACD, considering fundamentals, and checking the quality and timeliness of flow data. The rationale is qualitative; the document offers no backtest, definitions for the rounded-shape criterion, or evidence that the screen improves returns or risk-adjusted performance.

Key ideas

• The screen combines amplitude, rounded price behavior, and positive institutional flow.
• The cited formula uses a recent price change, a 50-period range measure, and DDX.
• The post proposes adding technical and fundamental filters as possible refinements.
• Subjective pattern interpretation, weak fundamentals, and delayed flow data are stated risks.
• No backtest or performance evidence is provided.

Tags

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