Screening Chinese Stocks for Range and a Fresh KDJ Golden Cross

Summary

This stock-selection note proposes screening for shares with a daily trading range above a threshold, no limit-up close on the prior day, and a newly formed KDJ bullish crossover. It presents the crossover as a technical signal that may mark the start of an advance, while the range filter aims to find more active stocks and the prior-day filter avoids names that just surged to the daily limit.

The note gives crossover formulas and a Python example, but it does not provide backtest results or evidence that the filters improve returns. The code and surrounding description may not implement the stated conditions consistently, so the precise definitions and data timing need verification before use. The author flags the indicator’s lag and the possibility of a reversal after a crossover, and notes that fundamental, sector, and broader market factors are omitted.

Key ideas

• The screen combines a daily range threshold, a prior-day limit-up exclusion, and a fresh KDJ bullish crossover.
• The KDJ signal is defined as K moving from below D to at or above D.
• The note offers formulas and sample code but reports no performance evidence.
• KDJ can lag, and prices may reverse after a bullish crossover.
• The author suggests combining the signal with company, sector, and market analysis.

Tags

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