Stock Screening with Daily Range, Ten-Day Average, and Money Flow

Summary

The document describes a short-term stock screen combining three conditions: daily price amplitude above a threshold, an opening price near the ten-day moving average, and a money-flow measure used to rank candidates. It interprets the range condition as evidence of elevated short-term movement, the moving-average condition as a possible pullback or adjustment, and stronger money flow as a sign of buying interest. Example formulas and Python-style snippets illustrate how to combine the filters, using Chaikin Money Flow as the flow indicator.

The article warns that short-term inflows do not establish fair value and may obscure longer-term fundamental changes. It suggests adding valuation measures and examining money flow over longer windows. It provides no backtest, performance results, or evidence that the screen predicts returns. The examples also leave some implementation details unclear, including the exact meaning of “around” the moving average and the direction used to identify strengthening money flow, so the stated interpretation should be checked against the actual formulas before use.

Key ideas

• The screen combines price amplitude, proximity of the opening price to a ten-day average, and a money-flow condition.
• The example defines proximity as an opening price within five percent of the ten-day moving average.
• Chaikin Money Flow is offered as one possible measure for ranking or filtering stocks.
• Short-term money inflows do not establish that a stock is fairly valued or that its fundamentals are sound.
• The article offers no empirical performance evaluation of the selection rules.

Tags

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