Stock Screening with Price Amplitude, Rising Averages, and Net Buying

Summary

This stock screen combines three signals: price amplitude above a stated threshold, a condition described as upward divergence in the day’s moving averages, and afternoon large-order net inflow. Its rationale is to pair price movement and trend information with a measure of buying activity. The article also suggests adding volume, valuation, profitability, business quality, and risk controls when refining the screen.

The document provides formulas and a sample implementation, but no backtest, portfolio results, or evidence that the signals predict returns. The implementation does not clearly match the stated description: its flow calculation uses rising and falling price-volume observations across rolling periods, which is not necessarily an afternoon large-order measure. The moving-average condition and the amplitude formula also need verification before replication. The article itself cautions about noisy signals and the influence of individual stocks, and recommends attention to position and portfolio risk.

Key ideas

• The screen combines price amplitude, a moving-average condition, and net buying activity.
• The stated idea is to find stocks with both price movement and active buying.
• Suggested refinements include volume, valuation, profitability, business quality, and risk controls.
• No backtest or performance evidence is provided.
• The example code’s flow and price conditions may not implement the described afternoon large-order signal precisely.

Tags

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