Screening for Seven-Day Declines and a Rising KDJ K Value

Summary

This Chinese stock-selection idea combines a turnover filter with a short-term price decline and a KDJ-related condition. It seeks stocks with turnover above 3% and below 12%, seven consecutive declining days, and a KDJ K value that has increased within a specified range. The document describes the setup as a possible way to find rebound candidates after persistent weakness, with the KDJ measure serving as a technical input.

It provides formula and Python examples, but the stated conditions are not fully consistent: the formula uses a K-to-low difference threshold, while the Python example checks whether the close-to-low difference is below 5 and tests lows against opens rather than clearly measuring seven consecutive falling closes. The article reports no empirical results and warns that price declines alone omit company fundamentals, while a volatile oscillator may reduce reliability. It recommends testing definitions and adding other indicators or fundamental checks.

Key ideas

• The proposed screen combines turnover between 3% and 12% with seven days of price weakness.
• A KDJ K-value condition is intended to identify possible rebound setups.
• The formula and Python example describe materially different price and indicator conditions.
• No backtest evidence is presented, and fundamentals are not included in the core screen.
• The author suggests adding other indicators and company financial analysis.

Tags

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