A Stock Screen Combining Daily Range, the Ten-Day Average, and KDJ Crossovers

Summary

The document presents a daily stock-selection rule combining three technical conditions: the prior session’s high-low range must exceed a threshold relative to its close, the current open must be near the ten-day moving average, and the K line of KDJ must turn upward across the D line. The accompanying examples show how to calculate these conditions and intersect the resulting stock sets. The stated rationale is to seek active shares opening near their recent average while showing a possible upward momentum shift.

No backtest, return series, benchmark, or evidence of predictive performance is supplied. The text itself notes that a KDJ crossover may fail and that a small set of technical inputs can omit other relevant information. It suggests adding further indicators, fundamentals, and risk controls, but does not define or test those additions. Thresholds and indicator implementations may also affect which stocks qualify.

Key ideas

• The screen requires a sufficiently large daily range, an open near the ten-day average, and a fresh upward KDJ crossover.
• The three conditions are combined so that a stock must satisfy all of them.
• The KDJ crossover is treated as a possible upward signal, not a guarantee of gains.
• The document supplies example indicator calculations but no performance evaluation.
• It identifies limited inputs and missing risk controls as weaknesses of the approach.

Tags

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