Screening for a KDJ Crossover, High Daily Range, and a Rising 5-Day Average

Summary

This document describes a stock screen requiring daily amplitude above one percent, a newly formed KDJ crossover, and a rising 5-day moving average. The rationale is that a wide daily range may indicate active trading, a fresh crossover may signal improving momentum, and a rising average may confirm an upward short-term trend. It supplies example indicator calculations and selection logic, but reports no historical test, returns, or comparison with other screens.

The strategy is based on technical conditions and does not assess company fundamentals. The article warns that sharp market moves can cause the logic to fail and suggests adding fundamental measures or considering sector conditions. There are implementation details to verify: the prose refers to the stock's average price being above the 5-day average, while the provided logic checks whether the moving average itself is rising. The example KDJ calculations also use rolling averages that may differ from the smoothing convention in the formula reference. These differences affect which stocks qualify and should be settled before treating the screen as reproducible.

Key ideas

• The screen requires amplitude above one percent, a fresh KDJ crossover, and a rising 5-day moving average.
• The proposed rationale combines activity, a momentum signal, and short-term trend confirmation.
• The article provides no performance evidence or historical test of the selection rules.
• The logic omits company fundamentals and may fail during sharp market moves.
• The prose and sample conditions differ on the moving-average requirement, and the KDJ calculation should be checked.

Tags

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