Chinese Stock Screen Using Volatility, Oversold KDJ, and Recent Limit-Ups

Summary

The document describes a Chinese equity screen combining daily price range, a low KDJ reading, and evidence of a limit-up event within the prior 25 days. It presents the conditions as a way to find volatile, potentially oversold stocks that have recently attracted strong market interest. It also outlines an expanded version that adds other technical indicators, company fundamentals, and market conditions.

The document includes formula and Python examples, but the examples are not fully consistent: the stated rule refers to a recent limit-up, while the Python conditions also check a shifted stock-code list. The text gives no backtest results or evidence that the screen produces an edge. It warns that the rules rely on short-term technical signals and market popularity, omit fundamental analysis in their basic form, and may perform poorly in different market environments. The proposed additions are suggestions, not validated improvements.

Key ideas

• The screen combines a price-amplitude threshold, KDJ below 20, and a limit-up event in the previous 25 days.
• A low KDJ reading is used as an oversold technical condition, while a recent limit-up serves as a sign of market attention.
• The document suggests adding other technical indicators, company fundamentals, and broader market factors.
• The basic screen does not account for company fundamentals and may be sensitive to changes in market conditions.
• The document provides implementation examples but no performance evidence.

Tags

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