Chinese Stock Screening with KDJ Crossovers and Consecutive Limit-Ups

Summary

This document describes a Chinese A-share screening rule that combines daily amplitude above 1%, a newly formed KDJ crossover, exclusion of ST-designated stocks, and consecutive limit-up sessions within the recent five-day window. It proposes placing qualifying shares in a watchlist before making investment decisions. The article includes indicator and Python examples, but the stated method is the screening logic rather than a complete entry, exit, or portfolio system.

The rationale is that elevated amplitude and a bullish KDJ signal may indicate improving short-term momentum, while recent limit-ups suggest strong attention. The article offers no backtest results or performance measurements. It warns that price action alone omits company fundamentals, that limit-ups may be temporary, and that volatile shares carry risk. It also mentions fundamentals, liquidity, and market structure as possible additions, without specifying how to implement or validate them. The provided examples contain implementation details that may not align perfectly with the prose, so the criteria would need careful verification before research use.

Key ideas

• The screen combines amplitude above 1%, a recent KDJ crossover, non-ST status, and repeated limit-up activity over five days.
• The author treats high volatility and limit-up attention as signs of possible short-term opportunity.
• The article does not provide performance evidence or a complete trade management plan.
• Fundamentals, liquidity, and market structure are identified as possible additional filters.
• The screen is exposed to short-term reversal and company-specific risks.

Tags

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