A Short-Term Stock Screen Using Amplitude, KDJ, and Moving Averages

Summary

This Chinese-language post proposes a short-term equity screen using price amplitude above one, a KDJ reading below 20, and a condition described as at least five moving averages overlapping. Its rationale is to find stocks that are subdued yet have short-term market activity, with overlapping averages suggesting a directionless or consolidating market. The author presents both an indicator-style expression and a Python-style screening example, then describes an expanded version that adds a price-to-earnings ceiling, a top-decile circulating-market-value rank, and a negative MACD reading.

The post warns that the screen may miss stocks with longer-term upward trends and that dependence on short-term fluctuations can produce unstable selections. It offers no backtest, return evidence, or precise definitions for amplitude, average overlap, or the market-value ranking. The examples also do not fully align: the stated overlap condition is not clearly represented by the displayed close-versus-five-day-average count, and the expanded criteria differ from the initial screen. The suggested improvements, such as adding valuation and timing rules, are proposals rather than validated results.

Key ideas

• The initial screen combines amplitude above one, KDJ below 20, and a stated moving-average overlap condition.
• The proposed expanded screen adds valuation, market-value ranking, and MACD filters.
• The author frames the setup as a way to identify consolidating stocks for short-term trading.
• The post warns that the screen may miss longer-term winners and select volatile stocks.
• No performance test is provided, and the examples do not clearly implement the stated moving-average condition.

Tags

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