A Chinese Stock Screen Using Range, KDJ Crossovers, and Rising Averages

Summary

This document describes a Chinese stock screening rule that combines daily price range, a newly formed KDJ crossover, and upward trends in several moving averages. Stocks enter a watchlist when their daily high-low range exceeds 1%, the KDJ J line crosses above D, and the short, medium, and longer moving averages are all rising. It includes example implementations in a stock screening formula and Python, though the calculations are not fully consistent between them.

The rationale is that a larger range may indicate opportunity, a fresh crossover may signal improving momentum, and rising averages may reflect a favorable trend. The article provides no backtest results or performance evidence. It cautions that the screen omits business and financial fundamentals, may select stocks after much of a move has occurred, and can be sensitive to the chosen averages and periods. It suggests adding other technical measures and fundamental criteria, but does not test those changes.

Key ideas

• The screen combines a daily range threshold, a fresh KDJ crossover, and rising moving-average trends.
• The stated range threshold is greater than 1% of the low price.
• The rationale treats the crossover and rising averages as signs of improving momentum and trend.
• The examples use different calculation details, so implementations may not produce equivalent selections.
• The article gives no performance evidence and warns about fundamental risks, chasing extended moves, and indicator choices.

Tags

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