A Technical Stock Screen Combining Rising Lows, Range, and a KDJ Crossover

Summary

This post describes a technical equity selection rule that looks for stocks with a stated amplitude threshold, rising bottoms, and a newly formed KDJ golden cross. The rationale is that rising lows may indicate support while the crossover may help identify a possible entry point. Formula and Python examples are included as implementation sketches, though they do not provide a complete, verified strategy or evidence of returns.

The post acknowledges that the screen relies on technical data and omits fundamentals. It also notes that KDJ signals can be distorted by unusual market moves. It recommends considering additional indicators such as MACD or RSI, along with financial and capital-flow information, and adjusting the criteria to the investment approach. There are implementation ambiguities: the examples use different interpretations of amplitude, and the stated plan adds several optional filters without defining their rules. No backtest, benchmark, trading costs, or position-sizing method is reported, so the criteria should be treated as a screening concept requiring validation.

Key ideas

• The proposed screen combines price amplitude, rising lows, and a fresh KDJ crossover.
• Rising lows are used as a potential support or strengthening-price condition.
• The post cautions that technical signals omit fundamentals and can be disrupted by abnormal moves.
• It suggests adding other indicators and fundamental or capital-flow information.
• The examples leave some criteria ambiguous and provide no performance validation.

Tags

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