Chinese Equity Screen Using KDJ Crossovers and Positive Earnings

Summary

This Chinese equity screening rule combines a daily price-range threshold, a market-cap ceiling, positive quarterly earnings, and a KDJ bullish crossover. The crossover is described as J moving above K, alongside recent indicator comparisons; the example formula also applies the amplitude and capitalization filters. The proposed refinement adds sentiment and relative-strength measures, alongside smaller position sizes and stop losses.

The document explains the rationale as a blend of technical and fundamental screening, but provides no historical test, performance data, or precise validation of the signal. It warns that a reversal signal can be whipsawed by short-term price moves and that technical indicators alone leave broader risks unaddressed. The sample formula and Python sketch are illustrative and contain ambiguities: the code's quarterly earnings date filter does not clearly implement exactly four quarters, and its crossover condition checks prior bars in a way that may not match a single-bar cross. Treat the screen as a starting specification requiring data and logic checks.

Key ideas

• The screen combines price amplitude, a market-cap limit, positive earnings, and a KDJ crossover.
• The proposed refinement includes sentiment and relative-strength inputs.
• The source recommends limiting position size and using stop losses to manage risk.
• No backtest or evidence of profitability is provided.
• Short-term fluctuations can produce misleading reversal signals.

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