Combining Amplitude, KDJ Crossovers, MACD, and Order Flow for Stock Selection

Summary

The document describes a Chinese stock-screening approach that looks for daily price amplitude above 1%, a newly formed KDJ crossover, positive MACD confirmation, and net buying from large or extra-large orders during trading. The selected stocks enter a watchlist. It explains the indicators as signals of volatility, improving momentum, and possible institutional buying, and includes sample indicator formulas and Python logic for working with price and tick data.

The article cautions that the screen ignores company fundamentals and broader market conditions, and that relying on current trading activity alone is risky. It recommends combining fundamentals, market direction, and several indicators, and considering more order-flow signals. The examples are illustrative rather than evidence of profitability: no controlled backtest or performance results are provided. The written selection rule and code also differ in places, including how the large-order thresholds and KDJ/MACD conditions are implemented, so the examples should not be treated as a fully validated specification.

Key ideas

• The screen combines price amplitude, a fresh KDJ crossover, MACD confirmation, and large-order buying.
• The proposed signals are interpreted as evidence of volatility, positive momentum, and possible demand from large traders.
• The article advises combining technical signals with fundamental and broader market analysis.
• The document provides sample formulas and data-processing logic but no backtest establishing profitability.

Tags

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