Chinese Stock Screen: KDJ Golden Cross with RSI and Range Filters

Summary

This Chinese stock selection rule combines three conditions: daily high-to-low amplitude above 1%, a newly formed KDJ golden cross, and a 14-period RSI below 65. The accompanying examples describe calculating the range as the high-low difference relative to the low, detecting a fresh crossover, and including stocks that meet all conditions in a portfolio. The rationale is that active price movement and a bullish short-term crossover may indicate improving demand, while the RSI threshold avoids selecting stocks whose readings are already higher.

The post presents this as a short-term screening idea, not a fully specified trading system. It offers no historical test, portfolio returns, transaction costs, or exit rules. It also warns that technical indicators can interact inconsistently and that stock moves have causes beyond the indicators; it recommends broader analysis, diversification, and risk controls. The screening thresholds and indicator implementation should be treated as hypotheses to validate, since the document supplies no evidence that the combined signal improves results.

Key ideas

• The screen requires amplitude above 1%, a fresh KDJ golden cross, and RSI below 65.
• The post interprets the crossover as a possible sign of improving short-term buying interest.
• It frames the rule as a short-term stock selection method rather than a complete entry and exit system.
• The document supplies code examples but no backtest or performance results.
• It cautions against relying on indicators alone and calls for risk controls and diversification.

Tags

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