Stock Screening with Moving-Average Crossovers, Amplitude, and Fund Flows
Summary
This stock-selection concept combines a price-amplitude threshold above 1, simultaneous bullish crosses among three moving averages, and a ranking based on net large-order flows. The stated interpretation is that amplitude reflects volatility, technical crossovers indicate direction, and large-order flows may reveal activity by larger investors. Formula and Python examples illustrate parts of the idea; the Python version uses moving averages with several specified lookback periods, filters for trading volume and price, and ranks candidates by price. Those implementation choices do not fully align with the described large-order-flow ranking, and the amplitude calculation is not clearly reconciled with the threshold’s units.
The document offers no historical test, return statistics, or evidence that these signals have predictive value. It recognizes that a rigid indicator-only screen can overlook fundamentals and company or industry conditions, and recommends considering financial information and industry outlook. The suggested rules therefore serve as an exploratory filter rather than a validated strategy. Definitions for the flow ranking, crossover timing, and data handling would need clarification before the screen could be reproduced or evaluated reliably.
Key ideas
- The proposed screen combines amplitude above 1 with three moving averages crossing bullishly in sequence.
- It also includes a ranking based on net large-order flows.
- The examples add volume and price filters, but do not fully reproduce the stated flow-ranking rule.
- No performance evidence or backtest is provided.
- The note recommends considering company fundamentals and industry conditions alongside technical signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.