Chinese Stock Screen for Range, Fresh KDJ Cross, and Turnover

Summary

This Chinese equity screening idea selects stocks whose daily high-low range exceeds 1%, whose KDJ indicator has just crossed upward, and whose turnover lies between 3% and 12%. The article describes the range as a volatility filter, the fresh KDJ cross as a possible sign of improving short-term momentum, and the turnover band as a way to focus on stocks with moderate trading activity. It includes indicator formulas and code examples for identifying a recent cross.

The article cautions that market shocks, company problems, and liquidity conditions can still cause losses. It suggests risk controls, monitoring company and market developments, limiting individual positions, and considering additional factors such as valuation or size. These are screening rules, not a complete entry, exit, or portfolio management system. The document provides no backtest or evidence that the signal improves returns, and the code’s turnover calculation and KDJ implementation would need validation against the intended data conventions.

Key ideas

• The screen combines a daily range above 1%, a newly formed upward KDJ cross, and turnover between 3% and 12%.
• The proposed interpretation is that the cross may reflect improving short-term momentum, while the range and turnover filters describe movement and activity.
• The article recognizes market, company, and liquidity risks and recommends position limits and ongoing monitoring.
• It suggests adding company valuation or size measures as further filters.
• No performance study is presented, and formula and data conventions need validation before implementation.

Tags

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