A-Share Screening with KDJ Crossovers, Daily Range, and Float Size

Summary

This note describes a Chinese equity screen that adds a stock to a candidate pool when its daily high-to-low range exceeds 1%, the KDJ indicator has just crossed upward, and its tradable share count is at most 5.5 billion. It explains the range as a volatility filter, the crossover as a possible sign of improving short-term momentum, and the float cap as a liquidity consideration. It also gives indicator formulas and example implementations for screening.

The article provides no backtest, performance results, or evidence that these signals predict gains. Its interpretation of the crossover and float size is qualitative, and the examples differ in how KDJ is calculated. The author notes that technical and liquidity filters omit company fundamentals, that smaller floats can still have thin trading or rapid price moves, and that indicator thresholds may need adjustment. Suggested extensions include adding moving averages, MACD, fundamental and industry analysis, and trading-volume or market-cap measures.

Key ideas

• The screen combines a daily range above 1%, a newly formed KDJ bullish crossover, and a tradable float capped at 5.5 billion shares.
• The proposed rationale is to combine short-term price movement with a liquidity filter.
• The note provides formula and Python examples but reports no backtest or measured performance.
• The screen may miss company fundamentals, and small-float stocks can still have low volume and sharp price swings.
• The author suggests adding other technical, fundamental, and liquidity measures.

Tags

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