A Stock Screen Combining Daily Range, KDJ Cross, and Moving Averages

Summary

The screen selects Chinese stocks when the daily high-low range exceeds 1% of the low, the KDJ J line has just crossed above its D line, and the 20-day moving average is above the 120-day average. The author interprets the range condition as a sign of elevated volatility, the crossover as improving sentiment, and the moving-average relationship as evidence of a stronger trend. The document includes example indicator logic and code-oriented descriptions for applying the combined conditions.

The output is a candidate pool for further consideration, not a complete trading system: it gives no entry execution, exit, position sizing, portfolio rules, or backtest results. It explicitly notes that the screen omits company earnings and growth prospects and relies on simple moving-average parameters that may not suit different market horizons. It suggests adding fundamental measures or alternative technical methods, but does not test whether those changes improve performance. The signal logic should therefore be treated as a hypothesis requiring validation, including checks of data handling and indicator calculations.

Key ideas

• The screen requires a daily high-low range above 1% of the low price.
• It seeks a newly formed KDJ J-over-D crossover as a momentum condition.
• It also requires the 20-day moving average to exceed the 120-day moving average.
• The rules create a stock candidate pool rather than a complete portfolio or execution plan.
• The document warns that the method omits fundamentals and uses simple technical parameters without performance evidence.

Tags

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