Chinese Stock Screening with Amplitude, Institutional Flow, and KDJ Crossovers

Summary

This document presents a Chinese stock screening rule that combines a five-period amplitude threshold, a change in a proxy for institutional trading activity, and a newly formed bullish KDJ crossover. The crossover condition requires the J line to move above the D line after being at or below it, while the J line also rises relative to its prior reading. The screen is intended to run after the daily market opens.

The post gives formula-style conditions and an illustrative Python sketch using historical stock data, but it does not report a backtest, portfolio construction, or realized returns. The example mixes platform-specific functions with data and indicator calls, so it should not be treated as a ready-to-run, validated implementation. The author notes that technical signals can fail during market shifts and that adding too many filters may reduce returns, suggesting that fundamental and news information could be considered as additional inputs.

Key ideas

• The screen combines an amplitude filter, a change in an institutional-flow proxy, and a bullish KDJ crossover.
• The crossover requires the J line to move above the D line and rise from its prior value.
• The proposed selection is performed after the daily open.
• The post provides formulas and illustrative code but no backtest or performance evidence.
• Technical filters can fail when market conditions change, and added conditions may reduce returns.

Tags

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