A Stock Screen Combining Daily Range, KDJ Crossovers, and Bollinger Bands

Summary

This post presents an A-share stock selection rule that combines a daily high-low range threshold, a newly formed KDJ crossover, and a close between the Bollinger middle and upper bands. It supplies example implementations in a charting formula language and Python, using historical price data and common indicator calculations. Stocks meeting all three conditions enter a candidate pool; the document does not specify position sizing, exits, or a full portfolio construction process.

The accompanying rationale treats a wider daily range as evidence of movement potential, a KDJ crossover as a possible momentum shift, and a close above the Bollinger middle band as a sign of an upward move. It warns that the screen ignores company fundamentals, may select prices vulnerable to mean reversion, and can produce false signals in sideways markets. Suggested refinements include adding growth, valuation, market capitalization, and other technical measures. No backtest results or quantified performance evidence are provided, and the Python example may require adaptation to its data source and indicator conventions.

Key ideas

• The screen requires a daily high-low range above its stated threshold, a fresh KDJ crossover, and a close between the Bollinger middle and upper bands.
• The post provides example logic in both a charting formula and Python.
• The author interprets the combined conditions as identifying volatile stocks with improving momentum.
• The method omits fundamentals and may misfire during sideways markets or after prices revert toward their average.
• The document suggests adding fundamental, valuation, and other technical factors, but reports no performance testing.

Tags

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