Stock Screening with Volatility, Rising Averages, and Large-Order Flow

Summary

This Chinese-language post proposes screening stocks for amplitude above one, upward divergence in the day’s moving averages, and large-order net flow above 0.05 for at least three consecutive days. The stated rationale combines substantial price movement, an upward price trend, and buying support. It also discusses risks: short-term market conditions can overwhelm signals, order-flow measures may not identify institutional activity, and reliance on a small set of indicators can miss other drivers.

The author recommends adding fundamental measures and other technical indicators, as well as constraints such as float, sector, and market capitalization. The post includes formula and Python examples, but their implementations do not consistently match the stated screen: the moving-average comparison is potentially counterintuitive, and the code’s flow calculation and date handling need scrutiny. No backtest methodology or performance evidence is provided, so the screen is a hypothesis to validate rather than a demonstrated strategy.

Key ideas

• The proposed screen combines amplitude above one, upward moving-average divergence, and positive large-order net flow above 0.05 for at least three days.
• The rationale is to seek volatile stocks with an upward price pattern and apparent flow support.
• The post warns that order-flow data may not reliably identify institutional trading and that a few signals can omit important factors.
• It recommends adding fundamental measures, further technical indicators, and constraints such as sector and market capitalization.
• The provided examples contain implementation details that may not align cleanly with the stated criteria, and no performance test is shown.

Tags

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