Screening Chinese Stocks with KDJ Crossovers and Mid-Cap Float

Summary

This stock screen combines three conditions: daily amplitude above 1%, a newly formed KDJ crossover, and circulating market capitalization between 5 and 10 billion yuan. The post explains the crossover as a possible sign of improving market sentiment and presents indicator formulas and a Python example for applying the filters. The strategy selects qualifying shares as a portfolio; it does not describe entry timing beyond the screen or specify exits, rebalancing, or position sizing.

The rationale is that volatile shares may offer larger moves, while the capitalization band is intended to capture companies of moderate scale. These are proposed explanations, not evidence of profitability: the post provides no backtest or performance results. It also warns that the screen omits company fundamentals, industry conditions, and broader market factors, and that its narrow capitalization range may return few stocks. The author suggests adding fundamental and market-context filters and limiting exposure to highly volatile shares. The code examples are illustrative, and the post gives no validation of their calculations or implementation.

Key ideas

• The screen requires amplitude above 1%, a fresh KDJ crossover, and circulating capitalization from 5 to 10 billion yuan.
• The post frames a new crossover as a possible indication of improving sentiment, without showing performance evidence.
• The strategy does not specify trade exits, portfolio weights, or rebalancing rules.
• It recommends adding fundamental and broader market filters and managing exposure to volatile stocks.

Tags

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