Stock Screening with Volatility, Institutional Flows, and Arc Patterns

Summary

This Chinese stock-screening example combines three signals: daily price amplitude above one, positive institutional net flows summed over five days, and a rule-based arc-top or arc-bottom pattern. It describes the pattern checks using recent highs and lows over a 60-day window, and includes sample implementations for screening and sorting candidates by turnover. The stated rationale is to find volatile stocks with positive large-investor flows and a possible technical formation.

The article warns that technical patterns and flow measures can be noisy, while ignoring company fundamentals and longer-term prospects. It suggests adding fundamental filters and adapting selection and risk controls to the stock universe and market conditions. The document gives no backtest, performance evidence, or precise validation of the pattern rules, so the proposed signals should be treated as screening criteria rather than demonstrated sources of returns.

Key ideas

• The screen requires amplitude above one, positive institutional net flow, and a detected arc pattern.
• Institutional flow is represented by positive net amounts summed over five days.
• The sample pattern rules compare recent highs and lows with extrema over a 60-day window.
• The article cautions that technical signals can be volatile and omit fundamental information.
• It recommends combining the screen with fundamental measures and market-aware risk controls.

Tags

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