Chinese Stock Screen Using Amplitude, KDJ Crossovers, and Limit-Up Exclusion

Summary

This proposed Chinese stock screen places shares in a candidate pool when daily amplitude exceeds a threshold, a KDJ-related crossover has just occurred, and the previous session was not a limit-up. The article presents formulas for the amplitude test, KDJ calculations, and a limit-up exclusion, along with a sample Python-style implementation. Its stated rationale is that price movement and a fresh oscillator crossover may identify stocks with upward momentum while excluding stocks that have already hit the daily price ceiling.

The formula describes a crossover of J above D, which may not match every convention for a KDJ golden cross. The example also has implementation details that require checking, including its handling of crossover timing and limit-up identification. The post itself acknowledges that technical signals do not capture company financial or broader economic risks.

It suggests combining the screen with fundamentals or additional indicators, but supplies no backtest, return statistics, or evidence that the conditions predict gains. The method is therefore a candidate-generation rule, not a demonstrated trading system.

Key ideas

• The screen combines daily amplitude, a recent KDJ-related crossover, and exclusion of stocks that were limit-up the prior day.
• The stated crossover is J moving above D, a definition that may differ from other KDJ conventions.
• The example code requires review for crossover timing and limit-up classification.
• The article notes that technical filters omit company fundamentals and macroeconomic risks.
• No backtest or performance evidence is included.

Tags

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