Screening Chinese Stocks with Range, KDJ Crossovers, and Convertible Bonds

Summary

This stock screen combines three conditions: daily high-low range exceeds one percent of the low, the J line of a KDJ indicator has just crossed above its D line, and the security has a nonempty name for an outstanding convertible bond. The article provides both a formula-style expression and a Python outline for calculating the conditions and filtering a stock data frame. It frames wide range as a volatility signal and the fresh crossover as a possible sign of improving momentum, while the convertible-bond field identifies firms with outstanding debt-linked securities.

The source also cautions that the screen omits earnings and business prospects, and suggests adding fundamental and market-cap factors and using stop-loss and take-profit rules. It offers no performance results or validation. The sample implementation has potential ambiguities: its KDJ calculation uses rolling simple averages, and the bond-name condition may not align exactly with the stated first-appearance logic. The selection criteria should therefore be checked against the intended data definitions and tested before use.

Key ideas

• The screen requires a daily price range above one percent, a fresh KDJ J-over-D crossover, and an outstanding convertible-bond name.
• The article describes the range and crossover as volatility and momentum cues.
• It warns that outstanding convertible debt may reflect financial pressure and that price can reverse.
• It recommends adding fundamental or size measures and defining exit controls.
• No backtest results are presented, and the sample calculations require validation.

Tags

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