Filtering Volatile Stocks Below a KDJ Threshold While Excluding Limit-Up Shares

Summary

The document describes a Chinese equity screening rule that selects stocks with an amplitude above 1 and a KDJ reading below 20, while excluding stocks that reached the daily price limit in the previous session. It presents the screen as a way to avoid chasing shares after a limit-up move, and shows indicator and Python examples for expressing the conditions and sorting candidates by percentage change.

The article warns that selected shares can still face sharp volatility, short-term manipulation, and price distortions. A prior limit-up move may reflect temporary news rather than durable prospects, and the screen does not establish long-term value. It suggests adding technical and financial measures, considering longer-term trends, and defining entry and exit points. No backtest, performance figures, or evidence of predictive accuracy are provided, so the rules are a screening example rather than a validated trading strategy.

Key ideas

• The screen requires amplitude above 1 and a KDJ reading below 20.
• It excludes stocks that reached the daily limit in the previous session.
• The article frames this exclusion as a way to reduce the risk of chasing a recent surge.
• It recommends combining the technical filters with financial measures and longer-term analysis.
• The document provides no performance testing to establish the screen's effectiveness.

Tags

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