Stock Screening with Moving-Average Convergence and Afternoon Large-Order Flow

Summary

This stock-selection approach looks for convergence among five moving averages: the 5-, 10-, 20-, 30-, and 60-day averages. It combines that pattern with positive net large-order flow during the afternoon session, defined as inflows minus outflows. The article interprets clustered averages as a sign of price stability and positive order flow as evidence of buying interest.

The document frames the rules as a screen for potential future strength, not as a complete trading system. It gives no precise tolerance for deciding when averages count as converged, no detailed implementation, and no reported performance results. Although the heading mentions 2021, the final rules do not specify a date filter. The author advises treating the signals as reference points, adapting periods to investor preferences, adding analysis, and testing with more historical data; past market behavior may not persist.

Key ideas

• The screen looks for convergence among five moving averages spanning short to medium horizons.
• It also requires positive net large-order flow in the afternoon session.
• The article associates the combined signals with stable prices and buying interest.
• It does not define a numerical tolerance for moving-average convergence.
• No performance evidence is reported, and the final rules omit the year mentioned in the heading.

Tags

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