Screening Chinese Equities with Recent KDJ Crossovers and Opening Gaps

Summary

This stock-selection proposal combines three conditions: daily high-low amplitude above one percent, a newly formed KDJ crossover, and an opening price between two percent below and five percent above the previous close. The article presents the resulting stocks as a portfolio screen. It explains the amplitude condition as a way to find more volatile shares, the crossover as a possible sign of improving sentiment, and the bounded opening move as a stability filter. It includes example indicator logic and code references, but reports no backtest, returns, or comparison with a benchmark.

The author notes that the rules omit company fundamentals and industry context, and that volatile shares can fall sharply or lose strength after the open. Suggested refinements include adding financial quality, broad-market and sector conditions, and volume. The article therefore supplies a replicable screening idea with caveats, not evidence that the rules predict gains. The provided examples also differ in how they calculate KDJ and describe the crossover, so implementation details may change which stocks qualify.

Key ideas

• The screen combines intraday range amplitude, a fresh KDJ crossover, and a bounded opening gap.
• The stated amplitude threshold is above one percent, while the opening move ranges from minus two to plus five percent.
• The article interprets the crossover as a possible sign of improving market sentiment.
• It warns that volatile stocks may decline sharply and that opening gains may fade.
• The proposal gives no performance test and recommends adding fundamental, market, sector, and volume information.

Tags

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