Stock Screening with Moving-Average Alignment and Afternoon Large-Order Flows

Summary

This proposed equity screen combines three signals: at least five converging moving averages, net inflow from large orders during the afternoon, and a 20-day moving average above the 120-day average. The note interprets convergence as alignment among shorter and intermediate trends, afternoon net inflow as evidence of buying interest, and the average comparison as a positive longer-term trend condition.

The author suggests adding valuation filters such as price-to-earnings and price-to-book ratios, as well as alternative moving-average combinations or indicators including MACD and RSI. The document provides no backtest or measured results, and its code section is unfinished. It also cautions that the selected stocks may not be high quality and remain exposed to market and pullback risk. The proposal does not specify thresholds for convergence or large-order flows, nor how signals would be traded or risk-managed.

Key ideas

• The screen requires at least five moving averages to converge and afternoon net inflow from large orders.
• It also requires the 20-day moving average to exceed the 120-day average.
• The note suggests adding valuation filters and other technical indicators.
• No performance evidence or complete implementation is provided, and market and pullback risks remain.

Tags

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