Screening A-Shares by Turnover, Recent Gains, and Low KDJ K

Summary

This document describes a Chinese A-share screening rule that combines turnover between 3% and 12%, a positive ten-day price gain below 35%, and a KDJ K value below 20. It interprets a low K reading as a possible oversold condition and uses the turnover and recent return ranges to further filter candidates. The article also gives formula and Python examples intended to illustrate how the conditions might be implemented.

The rationale is that KDJ may help identify short-term price conditions, but the document provides no historical test, return series, or evidence that the screen predicts profitable trades. It notes that indicator signals can be mistimed and that technical analysis alone omits company fundamentals and industry conditions. The implementation examples also do not consistently match the stated rule: one Python condition checks individual daily gains and financing data, while the description refers to a ten-day cumulative gain. Treat the screen as an unvalidated filter that requires precise definitions, data checks, and backtesting before use.

Key ideas

• The screen combines turnover, a ten-day return range, and a low KDJ K reading.
• The article treats K below 20 as a possible oversold signal, not a guarantee of a rebound.
• Its examples include implementation details that do not fully match the stated screening rule.
• The document provides no performance results, so the rule needs independent testing.
• Company fundamentals and industry conditions may matter alongside technical indicators.

Tags

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