Screening Chinese Stocks for Volatility, a Fresh KDJ Cross, and a Limit-Down Open

Summary

This stock-selection idea combines three conditions: daily high-low amplitude above 1%, a newly formed KDJ crossover, and an opening price at least 9.95% below the prior close, described as a prior-day 9:15 indicative match at the limit. Selected shares enter a watch or investment pool. The document provides example indicator formulas and a Python-style implementation using historical daily stock data.

The rationale is that larger amplitude may offer opportunity, a KDJ cross may indicate improving momentum, and a deeply discounted opening may signal a potential mispricing. These explanations are hypotheses rather than demonstrated results: no backtest, return series, or comparison is supplied. The post warns that the screen omits company fundamentals and broad market direction, and suggests adding fundamental and sector context. It also does not establish that the indicative auction price predicts a rebound; the gap may reflect meaningful risk or adverse information.

Key ideas

• The screen requires amplitude above 1%, a newly formed KDJ crossover, and an opening gap of at least 9.95% below the previous close.
• The qualifying shares are placed in a candidate pool rather than supported by a tested entry and exit plan.
• The proposed rationale links amplitude to opportunity, the KDJ cross to momentum, and the gap to possible undervaluation.
• The document presents example formulas and data-processing logic but provides no measured performance evidence.
• Fundamentals and overall market conditions are identified as missing considerations.

Tags

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