Chinese Stock Screen Using RSI, KDJ Momentum, and Daily Range

Summary

This post presents a Chinese equity screening rule combining RSI below 65, a rising KDJ K line, and an amplitude measure above 1. The accompanying indicator reference uses a 14-period RSI, a 9-period stochastic calculation with 3-period smoothing, and compares the K line with its value two observations earlier. Its Python example computes amplitude as the high-low range relative to the close, then filters qualifying observations and sorts candidates by percentage change when at least five pass.

The post frames RSI as a gauge of whether a stock is oversold and KDJ as a signal of short-term strength, while the range filter seeks more volatile stocks. It cautions that the screen omits fundamentals and ignores changes in the KDJ D and J lines, which could contain reversal information. The code and description do not establish a tested return advantage; they also leave details such as the screening date, portfolio entry and exit rules, and transaction costs unspecified. The method is therefore a candidate-generation rule, not a complete trading strategy.

Key ideas

• The screen requires RSI below 65, a rising KDJ K line, and amplitude above 1.
• The indicator example compares the K line with its value two periods earlier.
• The Python example ranks qualifying stocks by percentage change if at least five meet the conditions.
• The post warns that the screen omits fundamental information and the KDJ D and J lines.
• No portfolio rules or performance evidence are supplied.

Tags

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