Stock Screening with Price Amplitude, Rounded Price Shape, and Large-Order Flow

Summary

This proposed short-term stock screen combines three conditions: price amplitude above a threshold, a rounded price pattern relative to recent prices, and a measure formed by multiplying price change by net volume from very large orders. The accompanying explanation interprets the amplitude as a way to identify active shares, the rounded shape as relatively gentle movement around a reference trend, and the combined price-and-flow measure as an indicator of trading interest and market expectations. An indicator formula is included, but no Python implementation is provided.

The post warns that the criteria focus on short-term activity and omit fundamental and macroeconomic factors. It also points out that large-order flow and its product with price change may be distorted by manipulative or noisy trading. The proposed improvements are to incorporate broader context and compare alternative combinations of the inputs. No empirical results, parameter validation, or backtest are presented, so the screen remains an informal selection idea rather than an established strategy.

Key ideas

• The screen combines price amplitude, a rounded shape in recent prices, and price change multiplied by large-order net volume.
• The author treats these inputs as indicators of short-term activity and market expectations.
• Potential manipulation and noisy order-flow data may distort the combined signal.
• The post recommends considering fundamental and macroeconomic context but presents no backtest.

Tags

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