Chinese Stock Screen Combining RSI, KDJ Growth, Turnover, and Valuation

Summary

This proposed Chinese stock screen combines RSI below 65, a rising KDJ K value, and a threshold for the prior session’s auction turnover rate. Its expanded version adds price-to-earnings and price-to-book limits, then suggests considering relative price change and moving averages. The article presents the screen as a way to find stocks with improving short-term technical conditions and market attention, and includes formula and Python examples that rank candidates by percentage change.

The article gives no backtest, performance data, or evidence that the conditions predict returns. It also contains inconsistencies: the initial turnover threshold is expressed differently from the code’s change calculation, and the discussion alternates between yesterday’s auction turnover and a turnover-rate change. The RSI condition is described as filtering oversold stocks, though a value below 65 alone does not establish that interpretation. It warns that turnover can fluctuate, KDJ can mislead, and selected stocks may be illiquid. The criteria should be reconciled and tested with point-in-time data before practical use.

Key ideas

• The screen combines RSI below 65, rising KDJ K, and a prior auction turnover condition.
• An expanded proposal adds valuation limits and other trend-related filters.
• The example ranks qualifying stocks by percentage change, but no performance evidence is supplied.
• The turnover definitions and thresholds are inconsistent across the description and examples.
• Liquidity and false signals from technical indicators are identified as risks.

Tags

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