A Stock Screen Combining Price Range, KDJ Crossovers, and Volume Growth

Summary

The document proposes a Chinese equity screen that combines a daily high-low range above one percent, a newly formed KDJ crossover, and a measure of today’s volume increase above five percent of its recent average. It provides example formulas in a charting-indicator language and Python, then describes selecting stocks that satisfy all three conditions. The rationale is that greater movement may create opportunity, a crossover may indicate improving momentum, and rising volume may reflect stronger participation.

The source lists market, security-specific, and trading-suspension risks and suggests adding valuation or growth criteria and adjusting exposure as conditions change. It provides no backtest, transaction-cost analysis, benchmark, holding period, exit rule, or evidence that the signals improve returns. Its two code examples also appear to operationalize crossover and volume conditions in particular ways, which should be checked against the intended definitions before use; the screen alone is not a complete trading system.

Key ideas

• The screen requires a daily high-low range above one percent, a newly formed KDJ crossover, and increased volume relative to a recent average.
• The proposed rationale links the range to opportunity, the crossover to momentum, and volume growth to participation.
• The source names market-wide, company-specific, and suspension risks.
• The document provides no performance test, transaction-cost estimate, or complete entry and exit plan.

Tags

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