Screening for Early Uptrends with Price Range and KDJ

Summary

This Chinese stock screening example combines a daily range filter, exclusion of stocks that reached the upper price limit on the prior session, and a technical test intended to identify the start of a strong upward move. It describes KDJ, a stochastic oscillator derived from recent highs, lows, and closing prices, and presents a sample calculation that uses the J line’s recent average as the final screen. The accompanying Python example also excludes selected market segments and uses historical daily prices to calculate the indicator.

The article offers a screening recipe rather than evidence of a validated strategy: it reports no backtest, returns, or risk statistics. It cautions that price and indicator conditions omit other technical and fundamental information, and that speculative activity can produce unusual price swings. It suggests combining technical and fundamental filters and removing special treatment or suspended stocks, but does not test whether those changes improve results. Implementation details and data assumptions in the sample may need verification before use.

Key ideas

• The screen combines a daily price range condition with exclusion of prior-session limit-up stocks.
• KDJ is used to identify stocks that may be starting a strong upward move.
• The sample implementation calculates the indicator from recent high, low, and closing price data.
• The article provides no backtest or performance evidence for the screening rules.
• It notes that indicator-only filters can miss important market and company information.

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