Combining KDJ, MACD, DMI, and RSI Crossovers in a Stock Screen

Summary

This screening method combines a daily price-range threshold with newly formed bullish crossovers in KDJ, MACD, DMI, and RSI. In the stated logic, the KDJ signal compares J with D; MACD and DMI use their respective component lines; RSI requires shorter-period readings to cross above longer-period readings. The article includes indicator formulas and example code, making the intended technical conditions more concrete. It offers no backtest, sample period, or return statistics to establish whether the combined signals have predictive value.

The rationale is that several simultaneous momentum signals might confirm improving price action, while a wider daily range identifies more active stocks. The author cautions that the screen omits company fundamentals and may fail during sharp market moves, and suggests adding valuation or sector context. There are implementation differences between the formula and Python examples, including how crossovers are detected, so the examples should not be assumed to produce identical selections. The post specifies a screening concept rather than a complete entry, exit, or portfolio-risk plan.

Key ideas

• The screen requires a daily high-low range greater than one percent.
• It combines newly formed KDJ, MACD, and DMI bullish crossovers with an RSI alignment condition.
• The article presents simultaneous indicator signals as a possible confirmation of improving momentum.
• No historical performance evidence is provided to validate the combined screen.
• The formula and Python examples differ in some signal details, and fundamentals remain outside the method.

Tags

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