Weekly Moving Average Crossover Stock Screening With Capital Flow Ranking

Summary

This stock selection approach combines a volatility screen, a weekly moving average crossover, and a capital flow ranking. It selects stocks with an amplitude above the stated threshold, a weekly five-period moving average crossing above the ten-period average, and stronger capital flow. Candidates are then ordered by capital flow and reviewed for possible medium-term trades. The document offers example indicator logic and a Python outline, but these references are not a tested or fully consistent implementation of the stated rules.

The author says the screen omits fundamental analysis and warns that capital flow can reflect speculative sentiment. Frequent rebalancing is another concern. The suggested improvements are to add technical and fundamental checks and adapt trading frequency to market conditions. No backtest results, transaction costs, risk-adjusted returns, or rules for position sizing and exits are provided, so the proposed entry logic alone does not establish profitability.

Key ideas

• The screen combines an amplitude threshold with a weekly moving average crossover and capital flow ranking.
• Candidates are ranked by capital flow before further review.
• The document recommends checking company fundamentals and market conditions before trading.
• Capital flow may be distorted by speculative sentiment, and frequent rebalancing can be a concern.
• The example logic is not accompanied by backtest results or defined exit and sizing rules.

Tags

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