A Chinese Stock Screen Combining Price Strength and a Fresh KDJ Crossover

Summary

This stock selection idea combines a daily amplitude threshold, exclusion of special-treatment stocks, selection before 10 a.m., a five-session price-strength condition, and a newly formed KDJ bullish crossover. The accompanying example defines the five-session condition as each close being at or above its five-session moving average throughout the window, then requires the K value to exceed D. It also gives a conventional nine-period KDJ calculation.

The document argues that volatility and a bullish crossover may identify short-term opportunities, but provides no performance results or validation. It acknowledges that the screen relies heavily on technical conditions and short-term price movement while omitting company fundamentals and longer-term trends. It recommends adding financial, industry, macroeconomic, liquidity, and trend analysis. The example’s calculations and timing assumptions would need careful checking against the intended market data and execution rules before use.

Key ideas

• The screen combines amplitude, listing status, a pre-10 a.m. selection time, recent price strength, and a KDJ crossover.
• Its five-session strength rule requires closes to remain at or above a five-session average.
• The KDJ signal is treated as bullish when K rises above D.
• The document warns that technical filters alone omit fundamental and long-term information.
• No backtest results or evidence of profitability are provided.

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