Chinese Stock Screen Using Range, Low KDJ, and Control-Line Strength

Summary

This document presents a Chinese stock selection rule based on daily range, a low KDJ reading, and a volume-weighted price-change measure called the control line. The stated screen requires amplitude above 1, KDJ below 20, and the current control value above its 21-day average. Formula and Python examples are included to illustrate these conditions.

The proposed rationale is to find volatile stocks with a low technical reading and stronger control-line activity, which the source frames as possible reversal candidates. It offers no backtest or performance evidence. The explanation itself is imprecise: it refers to K line and control being above a 21-day average, while the final rule and code use different expressions. The measure of amplitude also depends on scaling conventions, so the thresholds need validation against the intended data and implementation. The source notes that large swings carry risk and suggests combining the screen with additional indicators, volume-price analysis, fundamentals, and sector flows.

Key ideas

• The screen combines amplitude above 1 with a KDJ reading below 20.
• It requires the volume-weighted price-change control line to exceed its 21-day average.
• The source frames the conditions as a way to identify volatile, potentially reversing stocks.
• The formulas and prose contain ambiguities that require implementation checks.
• No performance evidence is provided, and the source cautions about volatility risk.

Tags

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