A Chinese Stock Screen Using Range, KDJ Crossovers, and Trading Pressure

Summary

This Chinese-language post describes a stock selection rule combining three signals: daily high-low range above 1%, a newly formed upward KDJ crossover, and a 14-period ratio of volume on rising sessions to volume on falling sessions above 1.3. It proposes combining qualifying stocks into a portfolio and includes sample indicator logic and Python-style selection code. The crossover is presented as a sign of improving sentiment, while the volume ratio is treated as evidence of buying pressure.

The post does not provide backtest results or evidence that the signals predict returns. It cautions that the screen ignores company and industry fundamentals, can concentrate the portfolio in volatile stocks, and may encourage chasing price moves. Suggested refinements include adding fundamental measures and limiting exposure to highly volatile names. The described logic is a screening idea, not a fully specified portfolio construction or risk management plan; transaction costs, position sizing, and validation across market conditions are not addressed.

Key ideas

• The screen requires a daily range above 1%, a fresh KDJ bullish crossover, and a rising-to-falling volume ratio above 1.3.
• It combines the three conditions to select stocks for a portfolio.
• The post interprets the crossover and volume ratio as signs of improving sentiment and buying pressure.
• The author warns that the method omits fundamentals and can expose investors to high volatility and momentum-chasing risk.
• No backtest results or performance evidence are provided.

Tags

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