Stock Selection with Price Shape and Large-Order Inflows

Summary

The document outlines a Chinese stock screening rule that combines an amplitude threshold, a rounded price pattern, and large-order net inflows above a stated level for at least three consecutive days. Its indicator example translates these conditions into a formula using close prices, a 50-bar high-low range, and recent volume-flow readings. The accompanying rationale is that a rounded shape may filter for smoother price movement while persistent large-order inflows may signal buying pressure.

The article presents no backtest, performance data, or evidence that the screen predicts returns. It warns that large-order flow data can change and that a history-based rule may not adapt to new conditions. It suggests combining the screen with other technical and fundamental information, then applying risk controls such as stops and profit-taking. The rule is therefore an idea for further evaluation, not a validated strategy.

Key ideas

• The screen combines a price-amplitude condition with a rounded price shape and sustained large-order net inflows.
• The example formula evaluates price position within a 50-bar range and checks volume-flow readings across recent days.
• The article proposes that persistent large-order inflows may indicate buying pressure, but supplies no performance evidence.
• The author identifies changing flow data and reliance on historical behavior as limitations.
• The screen should be assessed alongside other information and explicit risk controls.

Tags

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