Screening Chinese Stocks for High Amplitude and a Fresh KDJ Golden Cross

Summary

This stock screen combines a daily price-amplitude threshold, a 2021 date filter, and a newly formed KDJ golden cross. The cross is defined as the K line moving above the D line after being below it on the prior observation. The article interprets amplitude above 1% as a sign of higher volatility and the crossover as a possible bullish signal. It provides indicator formulas and Python-style implementation guidance, but does not specify a holding period, exit rule, position sizing, or portfolio construction method.

The document gives no backtest results or evidence that the screen predicts returns. It cautions that a KDJ crossover does not guarantee a rise and that volatile stocks require risk controls. It suggests adding fundamental or other technical filters, along with stop losses and diversification. The year filter confines the stated screen to 2021 data, so the description does not establish that the approach generalizes to other periods or current market conditions.

Key ideas

• The screen selects stocks with daily amplitude above 1% and applies a 2021 date filter.
• A fresh KDJ golden cross occurs when K moves above D after being below it in the prior observation.
• The article treats the crossover as a possible bullish signal, not a guarantee of gains.
• High amplitude can increase risk, so the author suggests stop losses and diversification.
• No performance results, holding period, or exit rules are provided.

Tags

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