Screening Chinese Stocks with Volatility, KDJ Crossovers, and MACD

Summary

The post describes a stock screen that combines three technical conditions: daily high-to-low amplitude above one percent, a newly formed KDJ bullish crossover, and a MACD value below zero two sessions earlier. The author frames the combination as a way to find volatile stocks showing a potential momentum turn after recent weakness. It provides example formula and Python references for expressing the conditions and placing qualifying stocks in a watchlist.

The post cautions that relying on a small set of indicators can produce risky selections, since the screen does not account for company fundamentals, broader market direction, or historical trading behavior. It recommends combining multiple signals and adding further decision criteria. The material defines a screening hypothesis, but presents no backtest results, return data, or validation of the claimed rebound potential. The included code references also appear inconsistent about MACD calculations and crossover definitions, so an implementation should be checked before use.

Key ideas

• The screen requires daily price amplitude above one percent, a fresh KDJ bullish crossover, and a lagged negative MACD condition.
• The selected stocks are intended for a watchlist rather than presented as an automatic buy signal.
• The rationale is to find volatile stocks with a potential turn after recent weakness.
• The author warns that technical indicators alone omit fundamentals and broader market context.
• The post gives no performance validation, and its code references should be checked for consistency.

Tags

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