Stock Screening with Amplitude, RSI, and Capital Flow Strength

Summary

The document describes a stock screen that requires price amplitude above 1 and RSI below 65, then ranks candidates by capital-flow strength. It defines amplitude from the day’s high and low relative to the previous close, and describes a flow proxy that counts turnover as inflow when the close rises and outflow otherwise. The proposed refinement selects the strongest-flow portion of the candidate set and suggests combining the screen with fundamental, industry, market, and policy factors.

The text explains the screening logic and offers indicator formulas and implementation guidance, but provides no backtest, performance data, or precise evidence that the criteria predict returns. It cautions that technical indicators and flow alone may admit low-quality companies, and that a single ranking can overfit or favor local optima. The flow measure is also a simple price-direction-based proxy, not a direct observation of investor intent. Any use would need clear definitions, realistic costs, and out-of-sample evaluation.

Key ideas

• The screen filters stocks by amplitude and RSI before ranking them by capital-flow strength.
• Amplitude is measured against the previous close, while the flow proxy classifies turnover using the direction of the close.
• The suggested enhancement adds company, industry, market, and policy information to the technical screen.
• The document gives no empirical results establishing that the proposed rules are profitable.
• Flow ranking and indicator-only selection can miss fundamentals and may produce fragile selections.

Tags

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