A-Share Stock Screening with Turnover, KDJ Crossovers, and Seven-Day Declines

Summary

This Chinese stock-screening strategy combines a turnover range of 3% to 12%, a newly formed KDJ golden cross, and a recent seven-day price decline. The proposed rationale is to favor reasonably liquid stocks, use the indicator crossover as a possible sign of rising momentum, and look for candidates that have recently pulled back.

The document gives a screening rule and implementation references, but reports no backtest results or performance evidence. It also flags key limitations: the screen omits company fundamentals, relies on historical prices, and a long losing streak may signal continued weakness as easily as a rebound opportunity. Suggested refinements include adding fundamental information and risk controls such as stop losses and profit targets.

Key ideas

• The screen selects stocks with turnover between 3% and 12%, a recent KDJ golden cross, and a seven-day decline.
• Turnover is used as a liquidity filter, while the indicator crossover and price decline represent technical signals.
• The document provides no evidence that the combined conditions produce profitable trades.
• The strategy omits fundamentals and may select stocks whose declines continue rather than reverse.
• Risk controls and additional company or industry information are suggested as possible refinements.

Tags

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