A-Share Screen Using Daily Range, a KDJ Crossover, and Concentration

Summary

This Chinese A-share screening idea selects stocks with a daily high-low range above 1%, a newly formed KDJ crossover, and a concentration measure below 70%. The post interprets a wide range as elevated volatility and the crossover as improving market sentiment, then filters on concentration. It includes indicator formulas and Python-like calculations to illustrate the conditions, but the concentration calculation shown is based on turnover and may not represent ownership concentration in a standard sense.

The author notes that the screen ignores company earnings and growth, may exclude leading firms through a blunt concentration cutoff, and recommends adding valuation, profitability, and growth measures. The document offers no historical test, risk-adjusted performance, or evidence that the indicators predict returns. It also does not specify portfolio sizing, entry execution, or exit rules, so it is a candidate stock filter rather than a complete strategy.

Key ideas

• The proposed filter combines a daily price range above 1%, a fresh KDJ crossover, and concentration below 70%.
• The post associates the range condition with volatility and the crossover with improving sentiment.
• It warns that the screen omits earnings and growth information and may exclude some industry leaders.
• Additional valuation and fundamental conditions are suggested as refinements.
• No backtest evidence or complete trade management rules are provided.

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