A Chinese Stock Screen Combining Turnover, KDJ, and a Prior Limit-Down Signal

Summary

The document describes a Chinese equity screen that selects stocks with turnover between 3% and 12%, a rising KDJ K value, and a prior-day 9:15 matching price at the limit-down level. It explains these filters as a combination of moderate trading activity, a positive technical signal, and a potentially unusual market event that merits further scrutiny. It also offers example formulas and a Python outline for applying related filters and ranking candidates.

The article cautions that a prior limit-down condition may identify stocks with continuing downside risk. It recommends considering fundamentals such as valuation, longer-term technical measures, and other market indicators before making a decision. The examples are not a validated strategy: the document provides no performance evidence, and its formula and code use additional conditions that do not perfectly match the stated screen. Any results would depend on data definitions and implementation details.

Key ideas

• The screen combines a turnover range with a positive change in the KDJ K value.
• It also requires a prior-day opening matching price at the limit-down level.
• A prior limit-down event may signal elevated risk and calls for further analysis.
• The article suggests adding fundamental and longer-term technical filters.
• The example rules and code are illustrative and include conditions beyond the core screen.

Tags

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