Screening Mid-Cap Stocks with RSI and a Fresh KDJ Golden Cross

Summary

This stock-selection approach combines a relative strength index ceiling, a market-capitalization band, and a newly formed KDJ bullish crossover. It selects stocks with RSI below 65 and tradable market value between 5 billion and 10 billion yuan. The crossover is defined as the K line moving above the D line after being below it. The article gives the KDJ calculation and a Python example that computes the indicators, filters candidates, and ranks them by daily percentage change when enough names qualify.

The author presents the rules as a way to combine technical conditions with company size, but supplies no backtest or evidence of predictive performance. The discussion cautions that the screen omits fundamentals and industry prospects, and that KDJ can be limited as a standalone signal. It suggests adding other technical and fundamental checks. The sample implementation also depends on indicator conventions and data handling choices, so its outputs may differ across platforms.

Key ideas

• The screen requires RSI below 65 and tradable market value between 5 billion and 10 billion yuan.
• A fresh bullish KDJ crossover occurs when K rises above D after being below it.
• The example ranks qualifying names by daily percentage change when at least five candidates are available.
• The author warns that the rules omit fundamentals and rely heavily on a potentially limited indicator.

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