Stock Screening with Amplitude, RSI, and Institutional Flow

Summary

This stock selection method combines three filters: daily price amplitude above 1%, RSI below 65, and a positive institutional-flow measure. The document describes the first as a volatility screen, RSI as a check on overbought conditions, and institutional direction as a way to favor stocks with supportive large-player activity. It also suggests ranking qualifying stocks by relative price strength and retaining the strongest portion of the list.

The source provides indicator formulas and example implementation details, but no backtest results or evidence that the filters predict returns. It cautions that institutional-flow data can lag and may not capture future direction, especially when industry or policy developments drive sharp moves. It proposes adding other technical indicators and fundamental analysis, while leaving parameter choices and validation unspecified. The resulting screen should therefore be treated as a candidate-generation method, not as a demonstrated profitable strategy.

Key ideas

• The screen requires amplitude above 1%, RSI below 65, and positive institutional direction.
• The institutional-flow measure is derived from large-trade price and volume inputs.
• The example ranks qualifying stocks by relative strength and keeps the strongest portion.
• Institutional activity may lag and does not guarantee a stock’s future direction.
• The document recommends combining the screen with further technical and fundamental analysis.

Tags

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