Chinese Stock Screen Using Range, a KDJ Cross, and a Lower Low

Summary

This document outlines a Chinese equities screening rule that selects stocks whose daily high-low range exceeds 1%, whose KDJ J line has just crossed above its D line, and whose current low is below the previous day’s low. The selected stocks enter a candidate pool; the text does not specify portfolio construction, position sizes, or exact entry and exit rules. It includes example indicator logic and Python-style data handling, though the examples differ in their KDJ calculations and data fields.

The accompanying rationale associates a larger range with potential opportunity, a fresh KDJ cross with improving sentiment, and the lower low with stronger market response. These are assertions rather than tested findings: no historical performance, benchmark, or out-of-sample evidence is presented. The document itself warns that technical-only selection can miss company and industry fundamentals, that comparing daily lows may miss an early rise, and that short-term limit-up moves may reflect speculation. It suggests adding fundamental, industry, and money-flow measures and considering broader market conditions before deciding when to trade.

Key ideas

• The screen combines a daily range threshold above 1%, a fresh KDJ J-over-D cross, and a current low below the prior low.
• Stocks passing the conditions are placed in a candidate pool rather than assigned fully specified trades.
• The document provides indicator logic and sample code, but the examples use differing calculation details.
• It presents no backtest or performance evidence for the selection rule.
• It recommends considering fundamentals, industry trends, capital flows, and market conditions alongside technical signals.

Tags

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