A Chinese Stock Screen Combining Range, KDJ, and New Lows

Summary

The document presents a short-term Chinese equity screen using three conditions: amplitude above 1, KDJ below 20, and the current day's low below the previous day's low. It describes the setup as seeking volatile stocks with a weak technical reading and a recent lower low, on the premise that oversold prices might rebound. Formula and Python examples show how to combine the conditions, though the code is implementation guidance rather than evidence of profitability.

The text warns that the screen focuses on short-term price action and may miss longer-term trends or broader risks. A lower low can signal continued weakness rather than a reversal, and outcomes may depend on market liquidity and execution timing. It suggests adding valuation measures or other indicators such as MACD, RSI, and moving averages, but supplies no backtest, performance statistics, or rules for entries, exits, and position sizing.

Key ideas

• The screen combines amplitude above 1, KDJ below 20, and a lower daily low than the prior session.
• The rationale is that a weak technical reading and recent decline may precede a rebound.
• A new low may instead indicate ongoing downside, so the setup does not establish a reversal.
• Fundamental filters and additional indicators are suggested, but their impact is not tested in the document.

Tags

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