A Shenzhen Stock Screen Using KDJ Crossovers and Valuation Filters
Summary
This post proposes screening Shenzhen main-board stocks for daily price amplitude above one percent, a newly formed KDJ golden cross, and specified price-to-earnings and price-to-book ranges. It describes the crossover as a possible sign of improving sentiment and uses the valuation bounds to favor shares that appear relatively inexpensive. The post supplies indicator formulas and a Python example, while also adding growth and management quality to its final verbal description without defining measurable tests for those qualities.
No backtest results or evidence of predictive performance are provided. The author warns that simple valuation ratios can misrepresent a company’s worth, that the screen omits future earnings and business prospects, and that narrow filters may exclude strong companies. The suggested refinements include adding financial growth and return measures or using a broader evaluation method. The proposal is a rule-based candidate screen, not a demonstrated investment strategy; readers would need to resolve inconsistencies between the stated conditions and sample code before evaluating it.
Key ideas
- The proposed universe is Shenzhen main-board stocks.
- Candidates must have daily amplitude above one percent and a newly formed KDJ crossover.
- The screen applies specified price-to-earnings and price-to-book bounds.
- The post supplies formulas and sample code but reports no performance evidence.
- It cautions that valuation ratios are incomplete measures and recommends broader fundamental checks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.