Screening Shanghai-Listed Stocks by Range and Low Stochastic Readings

Summary

This post describes a stock screen combining a daily price-range condition, a Shanghai listing code prefix, and seven consecutive periods with a low SKDJ reading. The accompanying indicator formula defines the range as more than 1% of the previous close and checks that SKDJ remains below 20 for seven periods. The Python example uses a stochastic calculation and filters stocks whose codes begin with 60, but its rolling expression does not clearly implement the stated seven-period condition as written.

The author presents a broad interpretation: larger ranges suggest greater volatility, the code prefix selects a market segment, and persistently low oscillator readings indicate weakness. The post warns that weak readings may be followed by rebounds and that technical signals alone do not capture company quality or risk. It recommends combining technical and financial measures and considering industry and longer-term fundamentals. No backtest results or performance evidence are provided, and the indicator-based definition of “seven down days” differs from a literal sequence of falling closes.

Key ideas

• The screen requires a price range above 1% of the prior close and a stock code beginning with 60.
• The indicator formula checks for SKDJ values below 20 over seven periods rather than explicitly checking seven falling closes.
• The post treats low oscillator readings as evidence of short-term weakness but acknowledges the possibility of a rebound.
• It recommends combining technical signals with financial, company, and industry analysis.
• The document gives no performance results for the proposed screen.

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