Combining Turnover, Rising KDJ, and Seven-Day Weakness in a Stock Screen

Summary

This proposed equity screen selects stocks with turnover between 3% and 12%, a rising K value from the KDJ indicator, and a seven-session pattern described as seven consecutive down days. The article presents the combination as a way to consider trading activity, short-term indicator direction, and recent price weakness when searching for potential candidates. It also gives a formula-style description and a Python example for applying the conditions to grouped price data.

The post cautions that a losing streak can reflect weak sentiment and that KDJ alone omits other technical and fundamental information. It suggests adding fundamentals, volume, or MACD. The implementation does not clearly match the stated pattern: its lowest-low condition checks whether the latest low is the minimum over seven sessions, which is not equivalent to seven consecutive declining closes. No backtest or performance evidence is provided, and the turnover averaging period is unspecified.

Key ideas

• The screen uses turnover between 3% and 12%, a rising KDJ K value, and a seven-session weakness condition.
• The article frames the conditions as a short-term technical selection method.
• It warns that a seven-day decline and KDJ alone provide an incomplete assessment.
• The example’s seven-session low test does not verify seven consecutive down days.
• No performance testing or results are reported.

Tags

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