Chinese Stock Screen Using Amplitude, Trading Volume, Gaps, and KDJ

Summary

This note outlines a short-term Chinese stock screen combining daily amplitude above 1%, current trading volume above 10,000 lots, a higher opening price, and a newly formed KDJ golden cross. It frames amplitude and volume as signs of active trading, while the opening gap and KDJ crossover are intended to identify possible upward momentum. The note describes requiring KDJ to have declined for three days before the crossover and includes indicator formulas and a Python example.

The material offers a screening concept rather than evidence of a profitable strategy: it reports no backtest, returns, or comparison with a benchmark. It also cautions that the technical focus can omit company fundamentals and industry conditions, and that KDJ may lag price changes. The code is illustrative and does not clearly implement every stated condition, including the specified amplitude threshold and recent three-day KDJ sequence. Suggested additions include moving averages, MACD, RSI, and fundamental measures such as valuation and profitability.

Key ideas

• The proposed screen combines amplitude, current volume, a higher open, and a newly formed KDJ golden cross.
• The note specifies that KDJ should follow three consecutive declining days before crossing.
• It presents the setup as a short-term technical screen and gives formulas and sample code.
• No performance evidence or backtest is reported, and the example code may not fully match the described conditions.
• The author recommends considering market context, fundamentals, and additional indicators.

Tags

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