Chinese Stock Screening with Amplitude, Fund Flows, and a Fresh KDJ Cross

Summary

This stock selection method combines three conditions: daily price amplitude above 1, positive institutional fund flow, and a newly formed bullish KDJ crossover. The accompanying examples calculate amplitude from the high, low, and opening price; sum positive net fund amounts over five periods; and identify a crossover when K rises above D. The intended idea is to find volatile shares with supportive institutional activity and a short-term momentum signal.

The document provides formula and Python examples, but no backtest, performance figures, or evidence that the screen predicts returns. It flags market volatility, uncertain institutional behavior, noisy price movements, and delayed or mistaken KDJ signals as risks. It suggests adding indicators such as MACD and considering market style and industry direction, but does not specify rules for combining these inputs. The examples also depend on data definitions and implementation choices, so the stated thresholds and calculations would need validation before use.

Key ideas

• The screen requires amplitude above 1, positive institutional flow, and a newly formed KDJ bullish crossover.
• The example sums positive net fund amounts over five periods to represent institutional direction.
• The KDJ condition is based on K crossing above D.
• The document provides implementation examples but no empirical performance evidence.
• Market conditions, noisy signals, and uncertain fund flows can undermine the selection logic.

Tags

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