Screening Chinese Stocks by Turnover, Float Size, and KDJ Level

Summary

The document proposes a short-term Chinese equity screen requiring turnover between 3% and 12%, floating market capitalization between 5 billion and 10 billion yuan, and a KDJ K value below 20. The author interprets the low K value as an oversold condition that may precede a rebound, while the turnover and capitalization ranges are intended to constrain the candidate set. Formula and Python examples are included, though the Python sample does not visibly apply the turnover filter described in the prose.

The article cautions that industries may respond differently to low KDJ readings, that sector cycles and volatility affect rebound prospects, and that the approach is intended for short-term use rather than long-term holding. It suggests adding valuation measures and investigating industry conditions. No backtest, trade results, or evidence is presented to support the rebound premise, so the screen is a hypothesis rather than a validated strategy.

Key ideas

• The proposed screen combines turnover of 3%–12%, floating market capitalization of 5–10 billion yuan, and KDJ K below 20.
• The author interprets a low KDJ K reading as a possible oversold signal for a short-term rebound.
• Industry cycles can affect how quickly a stock responds to the signal.
• The examples should be checked for consistency because the Python sample omits the stated turnover condition.
• No performance evidence or backtest is supplied.

Tags

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