Stock Screening with Trading Amplitude and Persistent Large-Order Flows

Summary

This stock-selection screen combines price movement, trading-flow, and prior-day price conditions. It selects shares with amplitude above 1, large-order net volume above 0.05 for at least three consecutive days, and a close above the previous day’s low. The article gives indicator formulas and a sample data-processing outline, and suggests adding profitability and return-on-equity filters as possible extensions.

The document characterizes the screen as relatively broad and notes that it lacks a fundamental assessment and does not account for growth or the persistence of investor interest. It recommends considering financial measures and adding risk controls such as stop-loss or take-profit rules. No backtest, returns, transaction costs, or evidence of predictive value are provided. The supplied amplitude formula and prose description should be checked carefully before implementation, since the condition’s relationship to the stated amplitude threshold is not clearly demonstrated.

Key ideas

• The screen requires amplitude above 1, positive large-order net volume above 0.05 for three consecutive days, and a close above the prior low.
• The article provides formulas and a sample implementation outline.
• The screen does not evaluate company fundamentals or growth prospects in its core conditions.
• The author suggests adding financial filters and risk controls.
• The document provides no performance evidence, and its amplitude formula needs validation.

Tags

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