KDJ Golden-Cross Stock Screening with Amplitude and Turnover Filters

Summary

This stock-selection note proposes screening for shares whose daily range exceeds 1%, whose KDJ indicator has just produced a bullish cross, and whose turnover lies between 2% and 9%. It explains the intended roles of the filters: range as a measure of movement, the KDJ cross as a possible shift in momentum, and turnover as a way to avoid especially thin or unusually active trading. Formula and Python examples outline how to combine the conditions.

The article offers a rationale rather than empirical validation; it reports no backtest, sample, or performance evidence. It warns that the rules omit company earnings prospects and broader market conditions, and that turnover extremes can reflect unusual sentiment. Suggested extensions include adding financial growth measures, valuation or size-related factors, and further technical indicators. These ideas are not evaluated in the document, so the screen should be understood as a candidate rule set rather than a demonstrated source of returns.

Key ideas

• The screen requires daily price amplitude above 1%, a newly formed KDJ bullish cross, and turnover between 2% and 9%.
• The author treats amplitude as a volatility filter and the KDJ cross as a possible momentum signal.
• Turnover is used to seek moderate trading activity, though the note says both high and low levels may be problematic.
• The document supplies rule examples but no backtest or measured results.
• Company fundamentals and broader market conditions are identified as missing inputs.

Tags

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