Screening Chinese Stocks by Range, Fresh KDJ Cross, and Auction Amount

Summary

This stock screening approach first filters for a daily price range above one percent and a newly formed bullish KDJ crossover. It then ranks qualifying stocks by the day’s auction amount and selects the top five for a portfolio. The article presents the range as a volatility filter, the crossover as a possible sign of improving sentiment, and auction amount as a proxy for short-term popularity and trading interest.

The author cautions that the rules omit company fundamentals and may fail during sharp market moves. Suggested refinements include adding fundamental measures such as PEG and considering sector conditions. The document includes indicator formulas and sample code, but provides no backtest results or evidence that the rules predict returns. The code’s auction ranking appears inconsistent: its formula and Python ranking do not clearly select the highest auction amounts, so implementation details warrant review before relying on the stated top-five rule.

Key ideas

• The screen requires a daily range above one percent and a newly formed bullish KDJ crossover.
• It proposes ranking qualifying stocks by auction amount and selecting five names.
• The article treats range, KDJ, and auction activity as volatility, momentum, and popularity clues.
• It warns that fundamentals are omitted and that volatile markets may weaken the screen.
• The sample code’s ranking logic may not match the stated highest-auction-amount selection.

Tags

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