A-Share Screen Using Daily Range, Relative Volume, and Low KDJ

Summary

This Chinese A-share stock screen combines a minimum daily price range with unusually high, but bounded, trading volume and a low KDJ reading. The stated rules require the high-low range to exceed 1% of the low, volume to be between 1.5 and 6 times its five-day average, and the KDJ K value to be at or below 20. The article interprets these conditions as selecting stocks with active trading and potential entry opportunities after weakness.

The post provides indicator formulas and a Python-style illustration, but no backtest, sample period, or performance evidence. It warns that a technical-only screen may select financially weak companies and that smaller stocks may be less liquid, which can complicate entry and exit. It suggests adding fundamental measures and evaluating revised rules against historical data. The screen is a candidate-generation heuristic, not a demonstrated profitable strategy.

Key ideas

• The screen requires a daily high-low range above 1% of the low price.
• It bounds relative volume between 1.5 and 6 times the five-day average.
• A KDJ K reading at or below 20 is used as the potential entry condition.
• The article warns about missing fundamental checks and liquidity risk in smaller stocks.
• No performance or backtest evidence is reported.

Tags

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