Screening Chinese Stocks by Volatility, KDJ, and Recent 10% Gains

Summary

This note describes a Chinese equity screen using three conditions: amplitude above 1, a KDJ value below 20, and at least one daily gain of 10% or more during the previous 25 trading days. It sketches implementations in a charting formula and Python, using price range for amplitude, a stochastic oscillator for KDJ, and a rolling count of qualifying gains.

The rationale is to find volatile stocks that may rebound while incorporating a momentum signal. The article warns that volatile names and sharp daily rises can also fall quickly, so position control and stop losses matter. It suggests adding other technical measures or sector fund flows, but gives no backtest, performance evidence, or detailed validation. Its example formulas also contain apparent inconsistencies with the stated screen: the chart formula counts any positive daily change rather than gains of at least 10%, while the amplitude threshold and KDJ output scaling may depend on platform conventions. These details should be checked before use.

Key ideas

• The screen combines amplitude above 1 with KDJ below 20 and a qualifying gain within the prior 25 trading days.
• The stated rationale is to seek volatile stocks that may be poised to rebound.
• The article provides example implementations in a charting formula and Python.
• Large price swings and sharp gains carry downside and uncertainty, calling for risk controls.
• The examples lack backtest evidence and may not exactly implement the written conditions.

Tags

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