A Limit-Up Momentum Screen with KDJ Confirmation

Summary

The document outlines a short-term stock selection screen combining price movement, consecutive limit-up sessions, and a KDJ bullish crossover. It first proposes filtering for amplitude above 1 and stocks that had three consecutive limit-ups the prior day, then adds a KDJ crossover as a near-term buy signal. The suggested refinement raises the amplitude threshold to 1.5% and requires the K value to remain below 80.

It also flags key weaknesses: amplitude is not precisely defined, KDJ cannot reliably predict future direction, and a short-term signal may miss the broader trend. The page offers indicator and Python examples, though the Python conditions do not appear to implement the stated KDJ formula directly. It provides no backtest results or evidence that the screen is profitable, so the rules are best understood as a proposed screening idea rather than a validated strategy.

Key ideas

• The proposed screen combines recent amplitude, three consecutive limit-up sessions, and a KDJ bullish crossover.
• The refined version uses an amplitude threshold of 1.5% and caps the K value below 80.
• The document warns that the amplitude definition is ambiguous and that KDJ signals can be inaccurate.
• Short-term signals may overlook medium- and long-term market trends.
• The page provides example formulas but no performance evidence.

Tags

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