A Chinese Stock Screen Using Turnover and Rising KDJ Momentum

Summary

This note describes a Chinese stock selection screen that combines daily turnover between 3% and 12%, a specified listing-year filter, and a rising K value from a stochastic RSI calculation. The suggested signal requires K to be increasing and above its short moving averages, aiming to identify short-term changes in momentum and trading interest. The article also gives example indicator and Python implementations, though their filters do not align perfectly with the stated listing-year and turnover rules.

The author warns that a rising oscillator can be overstated, that a technical-only screen omits company fundamentals, and that selected stocks may still be weak. Suggested refinements include valuation measures and additional indicators. No performance results or validation method are provided, so the proposed screen should be treated as an untested selection idea rather than evidence of profitability.

Key ideas

• The screen combines a turnover band with listing-date and rising KDJ-style momentum criteria.
• The K value must rise and sit above its shorter moving averages in the provided indicator example.
• The article identifies technical overreliance and weak stock selection as key risks.
• It suggests adding fundamental and other technical measures, but reports no backtest evidence.

Tags

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