A Stock Screen Combining Intraday Range, KDJ Crossovers, and Flow

Summary

This post proposes an equity screening rule that combines three conditions: daily high-low range above a threshold, a newly formed KDJ crossover, and a price-change measure multiplied by large-order net volume exceeding a stated cutoff. It gives example formulas in a charting language and a Python sketch for retrieving daily stock data, calculating returns and a volume-based measure, and filtering candidates. The stated rationale is to pair active price movement and a momentum-style indicator with a measure intended to reflect trading flow.

The post offers no backtest, portfolio construction details, transaction cost estimates, or evidence that the screen predicts returns. Its discussion acknowledges that the criteria omit company and industry fundamentals, that volatile selections may carry larger risk, and that large-order volume can be difficult to interpret. The provided implementation also appears to use a volume-derived proxy rather than a clearly defined institutional order-flow feed, so the screen's data meaning and units should be checked before use. The rule is best understood as a screening idea requiring validation, not as a demonstrated strategy.

Key ideas

• The proposed screen requires a minimum daily range, a fresh KDJ crossover, and a thresholded price-change and volume measure.
• The post supplies example indicator formulas and a Python outline for calculating candidate conditions from daily data.
• The author presents the filters as proxies for volatility, improving sentiment, and trading-volume support.
• The article provides no backtest or evidence that the selected conditions produce excess returns.
• The post flags omitted business fundamentals, volatility exposure, and ambiguity in interpreting large-order volume.

Tags

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