Equity Screening with Turnover, Rising KDJ, and Bid–Ask Imbalance

Summary

This equity screen looks for stocks with turnover in a specified range, a rising K value from the KDJ indicator, and greater displayed volume at the best bid than at the best ask. The article explains these as filters for trading activity, short-term indicator direction, and order-book pressure. It includes formula and Python examples that compare recent KDJ readings and bid-versus-ask quantities.

The document offers no backtest, market sample, or performance measurements to establish whether the screen predicts returns. It cautions that broad price and capital-flow conditions are omitted and that displayed bid and ask quantities may reflect speculative positioning rather than durable institutional demand. It suggests adding price, volume, company fundamentals, or flow measures, but does not define or evaluate those additions. The turnover boundaries are expressed inconsistently as inclusive in the sample code and strict in the formula, so users would need to settle that detail before implementation.

Key ideas

• The screen combines a turnover range with a rising KDJ K value and stronger displayed bid volume.
• The sample implementations compare recent indicator values and best bid and ask quantities.
• Displayed order-book size may be distorted by speculative activity and does not prove lasting buying pressure.
• The article provides no performance evidence and leaves turnover boundary handling inconsistent.

Tags

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